The sale of the TikTok application is the subject of talks between Chinese authorities and billionaire Elon Musk. The US Supreme Court has announced that a decision will be made by January 19th on whether to sell the US portion of the website or ban its use in the US. TikTok has over 170 million users in the United States. This could significantly strengthen Musk’s X platform.
Bloomberg reported that TikTok could be sold through a bid or based on an agreement with the US government. And this may suggest that the future of the application is not solely in the hands of parent company ByteDance. As mentioned above, the Chinese government has so-called golden shares that give it influence over the company’s strategic decisions.
Musk’s potential acquisition of TikTok, which has more than 170 million users in the US alone, could significantly strengthen the X platform he already owns, the portal added.
Additionally, the billionaire has founded an artificial intelligence company called xAI that can use data generated by Chinese applications.
Will Chinese authorities sell TikTok? Elon Musk is negotiating
As reported by Bloomberg, Chinese authorities have yet to reach an agreement on action on the issue. It is unclear to what extent ByteDance was aware of the talks between Mr. Musk and the Chinese government. It’s also unclear whether Musk, TikTok and ByteDance have discussed a potential agreement.
“You can’t expect us to comment on pure fiction,” a TikTok spokesperson said of the portal’s information. The company has emphasized in previous statements that the Chinese government’s participation in ByteDance’s ownership structure will not impact the company’s global operations outside of China, including TikTok.
Musk, Mr. X, and the Chinese Cyberspace Ministry of Commerce have not yet commented on the matter.
See also: Elon Musk’s text published. reporter quit
Bloomberg analysts estimate the value of TikTok’s U.S. business at about $40 billion to $50 billion. As mentioned earlier, this is a significant amount even for the world’s richest people. It was recalled that Mr. Musk paid $44 billion. for Twitter (now X) and is still repaying the loan incurred from this purchase.
According to the U.S. Supreme Court’s ruling, ByteDance has until January 19, when a law banning TikTok in the U.S. goes into effect, to sell its U.S. branch. The company appealed the decision, arguing that it violated its right to free speech. Donald Trump, who will become U.S. president on January 20, also called for a moratorium on the regulations to give the new administration more time to develop a “political solution.”
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