“Chinese officials are considering an option for Elon Musk to buy TikTok’s US operations if the company fails to avoid a controversial ban on the app.”, — write: epravda.com.ua
Chinese officials are considering an option for Elon Musk to buy TikTok’s US operations if the company fails to avoid a controversial ban on the app. This is reported by the Bloomberg agency. A possible deal with Musk, who is one of Donald Trump’s closest allies, could be of interest to the Chinese government as it is expected to influence the final decision to sell TikTok. One scenario being discussed by the Chinese government is that Musk’s platform X (formerly Twitter) would gain control of TikTok US and run both businesses together. Advertising: With more than 170 million users in the US, TikTok could strengthen X’s position in attracting advertisers. Also, xAI, the artificial intelligence company founded by Musk, could take advantage of the vast amounts of data generated by TikTok. Chinese officials have not yet reached a clear agreement on what to do next, and discussions remain preliminary, the sources said. It is currently unclear how much ByteDance is aware of these discussions, and whether TikTok and Musk have been in talks about a possible deal. In April, Musk wrote that TikTok should remain available in the U.S.: “In my opinion, TikTok should not be banned in the U.S., even if such a ban could benefit platform X. It goes against the principles of free speech.”Advertisement: Discussions in Beijing show , that TikTok’s fate may no longer depend solely on ByteDance. Chinese officials acknowledge they will face difficult negotiations with the Trump administration on tariffs, export controls and other issues, and they see the TikTok talks as an opportunity to reach a compromise. The Chinese government has a so-called “golden share” in ByteDance’s subsidiary, which gives it influence over the company’s strategy and operations. TikTok insists the control only affects its subsidiary Douyin in China and does not affect ByteDance’s operations outside the country. However, China’s export regulations prohibit the sale of algorithms, including those used by TikTok. Therefore, the Chinese government would have significant influence over any possible sale that would include TikTok’s recommendation algorithm. Analysts estimate TikTok’s US operations at $40-50 billion. This is a significant amount even for the richest man in the world. It’s unclear how Musk could pull off such a transaction, whether it would require the sale of other assets, and whether the US government would agree. Musk has a positive reputation among many ByteDance employees in China. He is considered a successful entrepreneur with experience dealing with the Chinese government through his company Tesla Inc. Read also: “Krynzh” of the world level. Why TikTok is mastered by those who fought with it. We will remind: The lawyer of TikTok and its Chinese parent company ByteDance said during the debate in the Supreme Court that the law banning the application can be extended to other global companies. The US Senate has passed a bill that, among other things, would ban TikTok in the country if China’s ByteDance doesn’t sell the social network. US President Joe Biden has signed a law that will ban TikTok in the US if the Chinese company ByteDance does not sell the social network within a year. TikTok and Chinese company ByteDance spent $7 million this year to try to stop the US government from banning the social network in the country. TikTok’s owner, ByteDance, has been reported to shut down its app rather than sell it if the company exhausts all legal options to fight legislation banning the platform from US app stores.