China Denies Reports of Elon Musk Buying TikTok’s US Operations
Washington DC: TikTok has refuted claims that China is considering allowing billionaire Elon Musk to purchase the social media company’s US operations, calling the reports “pure fiction.” The speculation arose following a Bloomberg report suggesting Chinese officials were exploring options for the sale of TikTok to Musk amidst pressure from the US government.
Background of the Situation
In response to a law passed by the Biden administration last year, TikTok’s parent company ByteDance was mandated to divest its US operations. The impending deadline for compliance is set for Sunday, just before President-elect Donald Trump assumes office.
ByteDance has firmly stated its stance against selling TikTok’s US arm. When questioned about the recent rumors, a TikTok spokesperson dismissed them as baseless.
Details of the Report
According to Bloomberg’s sources, a scenario being discussed in Beijing involves Musk’s company X acquiring TikTok from ByteDance and integrating it with the former Twitter platform. The estimated value of TikTok’s US operations is believed to be in the range of $40 to $50 billion.
Despite Musk’s considerable wealth and ties to the US government, the logistics of such a transaction remain uncertain. X has not issued a statement regarding the report.
Reasons Behind US Concerns
The US government has raised concerns about TikTok’s data collection practices and alleged ties to the Chinese government, accusing the platform of being a security threat. China and ByteDance have vehemently denied these allegations.
TikTok has challenged the US government’s actions in court, with the case reaching the Supreme Court for review. Trump, who initially supported a ban on TikTok, has since expressed opposition to the move, citing potential benefits for rival platforms like Facebook.
Trump’s recent meeting with TikTok’s CEO and his request to delay the Supreme Court’s decision until his inauguration indicate a desire for a diplomatic resolution to the TikTok issue.
As the situation continues to unfold, the future of TikTok’s operations in the US remains uncertain, with stakeholders closely monitoring developments.
