It would mark a surprise in the saga surrounding the uncertain future of the application, the fact that Elon Musk is to inherit TikTok's U.S. operations. Hitherto, China had maintained that there could not be any forced sale of TikTok, and was supported by its parent company ByteDance, who rejected any sales to be enforced. For long, ByteDance seemed unwilling to oblige. However, the U.S. reports say discussions have begun regarding Musk acting as a buyer to aid the Supreme Court in closing the gap to favor the law that might eventually prohibit TikTok on the basis of national security concerns. While the unexpected move would fit the interests of ByteDance, Musk, and the Chinese government, the only way ByteDance can recover some value from the app in the American market is to sell its U.S. operations if a ban appears inevitable.
The massive user base of TikTok in the United States, with approximately 170 million monthly users, would be a goldmine for any buyer. A ban would therefore have a major financial impact and makes a sale a more pragmatic option. Still, any deal would probably need the approval of China given the export restrictions on the recommendation algorithm of TikTok - that technological core that reaps much popularity for it. Musk comes out as the most logical contender with deep ties to China through Tesla. The country stands as the second-largest market for Tesla, and its Shanghai Gigafactory ranks among the most productive facilities of the company.
In addition, Musk has also developed connections with Chinese officials, such as Premier Li Qiang; he has hence emerged as an insider within the Beijing elite. Such connections may make Musk the most covetable buyer, especially considering his record of aligning himself with China's geopolitical story, such as his infamous statements regarding Taiwan being an "integral part" of China. From Musk's perspective, buying TikTok would further solidify his dominance over the social media landscape. Already owning X (formerly Twitter), Musk would use TikTok's enormous user base to take his empire a step further. The app's ad-driven revenue model and the enormous repository of video content it holds would be of great benefit to Musk's AI company, xAI, for training data.
Beyond business considerations, the move to preserve TikTok's availability in the U.S. would be a further reinforcement of Musk's self-proclaimed status as a champion of free speech, a story he frequently touts despite criticism of his management decisions at X. The willingness of China to consider a sale also underlines a strategic calculation. The sale of TikTok to Musk would enable the Chinese government to preserve some influence over the app via existing export controls and simultaneously utilize such a deal in wider geopolitical bargain-cutting. Indeed, Musk's close relationships with U.S. President-elect Donald Trump, who has publicly flattered Musk and views him as an ally, might be factored into such a strategy.
The deal may also be used as a bargaining chip in negotiations with the Trump administration, which has threatened significant tariffs on Chinese goods. However, the road to Musk buying TikTok is far from easy. Financing such a deal would be a huge challenge, with estimates placing the app's value at $40–50 billion. After Musk's $44 billion acquisition of X, which left banks saddled with debt and the platform losing value under his leadership, new financing may be hard to secure. Public sentiment is also a hurdle. Many TikTok users have expressed opposition to Musk's potential ownership, citing concerns about his management style and its impact on the platform's culture.
Some users even vowed that they would be better off if TikTok is banned than under Musk. The talk of Musk purchasing TikTok speaks directly to the fine dance between technology, geopolitics, and economics. Even if the future holds uncertainty, the deal has potential to reshape social media, recast U.S.-China relations, and forever settle Musk's claim as one of the most powerful people of the 21st century.
