Could Elon Musk save TikTok from a ban in the US?

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TikTok could be banned in the United States if its China-headquartered owner, ByteDance, doesn’t sell the app by January 19.

On Friday (January 10), lawyers for the social media app tried to convince the US Supreme Court to either scrap or temporarily block a law that could see TikTok banned in the market if it’s not divested due to national security concerns.

The Supreme Court’s decision is expected to be made this week, but as the divest-or-ban deadline looms, one potential savior of the app in the United States has now been identified as tech billionaire Elon Musk.

According to reporting from Bloomberg on Monday (January 13), citing sources, “Chinese officials are evaluating a potential option that involves Musk acquiring the US operations of TikTok if the app is banned”.

Bloomberg added that “it’s unclear whether the multibillionaire, TikTok and ByteDance have held any talks”.

In a response issued to the media following the publication of Bloomberg’s report, a TikTok spokesperson said: “We can’t be expected to comment on pure fiction.”

TikTok’s parent company has previously indicated that it has no intention to sell the app, but according to reporting by Bloomberg, citing sources, Chinese officials “consider a takeover by Musk to be the next best thing” if the company’s Supreme Court appeal fails.

The news outlet also noted, however, that “there’s no indication the Tesla and SpaceX CEO is keen on acquiring the app”.

Musk is also the owner of social media platform X (formerly Twitter), which he acquired for $44 billion in 2022.

Bloomberg’s reporting suggests that Musk could be favored as a potential suitor for TikTok’s US operations due to his close business ties with China.

China’s government owns a 1% stake – a so-called ‘golden share‘ – in TikTok’s parent company, ByteDance.

Musk is also a close ally of President-elect Donald Trump, whose inauguration takes place on January 20 (the day after the divest or ban law potentially comes into effect).

Trump, who backed a TikTok ban during his previous presidency, has most recently advocated against a TikTok shutdown in the US.

In December, his legal team asked the Supreme Court to extend the deadline beyond January 19 to allow for a potential “political resolution” to TikTok’s impending ban. The Department of Justice pushed back on the plea, in a filing on January 3, as reported by NBC.

The Protecting Americans from Foreign Adversary Controlled Applications Act, which will take effect on January 19, targets apps owned by companies in countries considered security threats by the US.

TikTok is highlighted as a major concern under the law and US lawmakers warn that the platform could share sensitive user data with the Chinese government or influence the content Americans consume.

TikTok denies these claims. If the law is upheld by the Supreme Court, and ByteDance does not sell TikTok, US app stores will be required to remove the app, and updates will no longer be allowed starting January 19.

US lawmakers warned Google and Apple last month that they must prepare to remove TikTok from their app stores by January 19, 2025, if its China-headquartered parent company ByteDance hasn’t sold the platform by that date.

While existing users may still use the app for a time, it may eventually become nonfunctional in the market.


Last week, another US-based billionaire, Frank McCourt, via Project Liberty, formally made an offer for TikTok’s US operations with the ambition to relaunch the platform on “a new, American-made digital infrastructure”.

Project Liberty said on Thursday (January 9) that it has “the financial capacity to complete the transaction”, including “expressions of interest from investors, including major private equity funds, family offices, and high net worth individuals for adequate equity capital”. It said that it also has access to debt financing from “one of the largest banks in the United States”.

McCourt’s Project Liberty also said that it has “extensive backing from leading legal and financial advisors with strong experience navigating complex, high-stakes transactions on expedited timelines”.

“We’ve put forward a proposal to ByteDance to realize Project Liberty’s vision for a reimagined TikTok – one built on an American-made tech stack that puts people first,” said Frank McCourt, Founder of Project Liberty.

“By keeping the platform alive without relying on the current TikTok algorithm and avoiding a ban, millions of Americans can continue to enjoy the platform. We look forward to working with ByteDance, President-elect Trump, and the incoming administration to get this deal done.”Music Business Worldwide

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