China is reportedly exploring the possibility of selling TikTok's US operations to Elon Musk. Bloomberg reported.
The move is said to be under consideration by China if TikTok cannot avoid a potential ban in the US and cannot sell the app to a US-approved buyer until this week, January 19. Lawmakers from both major parties shared concerns that TikTok, which has more than 170 million US users, could be a threat to national security because of ties to the Chinese government.
The US Supreme Court is expected to rule this week whether to obey the law which calls for TikTok to become unavailable in the US unless the company is sold.
Read more: Here's what you need to know if TikTok is banned in the US
Chinese-owned ByteDance, the parent company of TikTok, would like to retain ownership of the platform. But it is reportedly open to Musk buying it and integrating it with X, formerly known as Twitter, as part of a contingency plan, according to Bloomberg, which cited unnamed people familiar with the matter.
A TikTok spokesperson told CNET, “We cannot be expected to comment on pure fiction.” It is also unclear whether ByteDance is aware of or involved in the reported discussions.
X did not respond to a request for comment.
The potential deal, which is said to be only in the preliminary stages of consideration, could bring TikTok's millions of US users into Musk's fold, which could improve X's ability to attract advertisers. In addition, Musk's AI company xAI – which powers X's AI chatbot Grock – may use data generated by TikTok to further its efforts.
The report suggests that the Chinese government views the Musk sale as part of a broader strategy to work on its relationship with the incoming Trump administration. President-elect Donald Trump, who takes office on January 20 for a second term, initially favored banning TikTok during his first term, but has since asked the Supreme Court to hit pause to the ban to give him time to find a solution. Musk was one of Trump's closest advisers during the transition and spent more than 250 billion dollars to support Trump in his election campaign.
TikTok is estimated to be worth between $40 billion and $50 billion.