This story has been updated to add video.
As TikTok nears its deadline to either sell or face a ban in the United States, Elon Musk has reportedly emerged as a potential buyer.
The U.S. Supreme Court heard oral arguments last week on — and seemed likely to uphold — the ban. Chinese officials reportedly want ByteDance Ltd. to remain the owners of the popular short-form video social media app but are in discussions on how it can work with the incoming Trump Administration. One option being floated is a potential sale to Musk, according to reporting by Bloomberg.
Here’s what we know.
Could Elon Musk buy TikTok?
Musk’s social media platform X, formerly known as Twitter, would take over TikTok with the two businesses running together, people close to the situation told Bloomberg.
By merging the two, Musk would garner access to large amounts of data from TikTok, which could potentially feed into his separate artificial intelligence company, xAI.
Bloomberg has estimated that TikTok’s U.S. operations could be valued around $40 billion to $50 billion.
Musk — the world’s wealthiest person — purchased Twitter in 2022 for $44 billion and is still paying off sizable loans. Musk later rebranded Twitter into X and the sale has since caused large controversy as Musk reinstated the accounts of several previously banned people, including President-elect Donald Trump.
More:X, formerly known as Twitter, constructs new headquarters building in Bastrop, Texas
Deliberations within the Chinese government are still preliminary, Bloomberg reported, and it is unclear if Musk and ByteDance have ever been in conversations about a potential sale.
Chinese law prevents companies from selling their software algorithm, like the one at the forefront of TikTok’s technology, and the government must approve a sale that includes TikTok’s software.
Billionaire Frank McCourt and Kevin O’Leary, known as “Mr. Wonderful” on TV’s “Shark Tank,” are part of a bid to buy TikTok through Project Liberty. O’Leary has said he’s discussed the potential bid with Trump. Microsoft Corp. and Oracle Corp. have also emerged as potential buyers as the former had previously sought to acquire the social media and the latter has a tech partnership with the company.
ByteDance Ltd. is focused on stopping the ban and avoiding a sale, people close to the situation told Bloomberg.
Shortly before Biden signed a bipartisan bill giving ByteDance a deadline of January 19 to divest its U.S. assets — including the sale of TikTok — or face a ban, Elon Musk posted on X that he supported TikTok remaining available in the U.S., citing free speech.
In my opinion, TikTok should not be banned in the USA, even though such a ban may benefit the 𝕏 platform.
Doing so would be contrary to freedom of speech and expression. It is not what America stands for.
— Elon Musk (@elonmusk) April 19, 2024
Musk’s many businesses, including Tesla, have footholds in both the U.S. and Chine. Tesla’s Shanghai factory, built in 2019, has helped to expand the company’s market share in China and built goodwill among government officials.
Trump has asked SCOTUS to pause a potential ban to allow him to work out a deal politically once he takes office on Jan. 20. Trump previously attempted to force TikTok to sell or face a potential ban in August 2020.
By selling to Trump’s seemingly closest ally, China stands to find common ground with Trump who has previously said he intends to impose harsh tariffs and export control against the country.
Could TikTok be headquartered in Texas?
Musk announced in June following a public feud with California Gov. Gavin Newsom that he would be moving all his companies to Texas.
Musk had previously opened Tesla’s headquarters and Gigafactory in Austin in 2022 and quickly became the largest private-sector employer in the city. It was only outranked by the state of Texas and the University of Texas system in the public-sector.
The Boring Company and SpaceX both already had presences in Texas ahead of Musk’s announcement. The former’s headquarters is located in Bastrop, just East of Travis County. SpaceX also has facilities in Bastrop, while its launch facility and other factories are located near Brownsville and throughout southern Texas.
More:Why is Elon Musk choosing this small Texas town as the landing spot for X headquarters?
In September, X began constructing its headquarters in Bastrop at Hyperloop Plaza.
In October, Musk purchased a $35 million compound in Austin to a home for himself, his kids and some of their mothers. The compound spans 14,400 square feet and includes a six-bedroom mansion and adjoining properties for his 11 children and two of the three mothers.
More:Elon Musk buys $35 million Texas compound for his kids, their mothers, NYT reports
Musk appears to be making good on his promise to move his companies to Texas, so if a sale with TikTok is successful, it stands to reason the social media app could join Musk’s other social media X in Bastrop or at least in the state.
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