TikTok has denied a report suggesting that the Chinese government is considering selling the app to tech billionaire Elon Musk to keep it running in the U.S. This comes as the app faces a potential ban due to new U.S. laws.
On Monday, Bloomberg reported that Chinese officials might allow Musk to buy TikTok’s U.S. operations if a law is enacted that would force its parent company, ByteDance, to sell its stake in TikTok or face a ban. The report was based on unnamed sources. In response, a TikTok representative stated, “We can’t be expected to comment on pure fiction,” when asked for a comment by Variety.
Musk hasn’t said anything about this report. He is the CEO of Tesla and SpaceX and is known for buying Twitter in 2022 for $44 billion, later renaming it X. The Bloomberg report mentioned that one idea being discussed is for X to control TikTok in the U.S. alongside Musk, but it’s unclear if any discussions have taken place between Musk, TikTok, and ByteDance.
TikTok could be banned in the U.S. starting January 19 unless the Supreme Court intervenes. On January 10, the Supreme Court heard TikTok’s urgent request to block the new law, which TikTok and ByteDance argue violates the First Amendment rights of its 170 million users in the U.S. However, the justices seemed to be more in favor of the government’s view that TikTok poses a national security risk due to its ties to the Chinese Communist Party.
ByteDance has not shown any interest in selling its roughly 40% ownership of TikTok to a party that the U.S. would approve of. Chinese officials have previously stated that such a sale would be blocked, as it would be considered a technology export.
Last year, Congress passed a bipartisan law, signed by President Biden, aimed at TikTok, which requires the app to either be sold or banned. The law, called the Protecting Americans from Foreign Adversary Controlled Applications Act, prohibits Apple and Google’s app stores and web hosting services from distributing TikTok in the U.S. unless ByteDance sells its ownership to a party from a country not viewed as a “foreign adversary” by the U.S.
Former President Donald Trump has asked the Supreme Court to pause this law so his administration can negotiate a solution that protects First Amendment rights while addressing national security concerns. During his presidency, Trump also tried unsuccessfully to force a sale of TikTok to U.S. companies due to similar worries.
