YEREVAN (CoinChapter.com) — Chinese officials are reportedly considering selling TikTok’s US operations to Elon Musk if a ban on the platform goes into effect. Sources cited by Bloomberg on Jan․ 14 claim Musk’s social media company, X, could take control of TikTok’s US business under one scenario being discussed. This plan may emerge as a contingency for handling potential restrictions from the incoming Trump administration.
However, TikTok’s parent company, ByteDance, continues its legal efforts to fight the ban. A TikTok representative told Variety that the report was “pure fiction.” The discussions reportedly involve integrating TikTok US with X, combining the two platforms’ operations.
Looming US Ban on TikTok
The US Supreme Court is reviewing a law that mandates ByteDance to either sell TikTok’s US operations or shut them down. This legislation, which goes into effect on Jan․ 19, was passed due to bipartisan concerns over potential surveillance and data-sharing with the Chinese government. Lawmakers fear TikTok could provide access to sensitive data about American users.
In March 2023, TikTok CEO Shou Chew testified before Congress, facing tough questions about data privacy and security. ByteDance argues the law violates the First Amendment rights of TikTok’s 170 million US users. On Jan. 10, the Supreme Court heard arguments in TikTok’s emergency appeal to block the legislation.
President-elect Donald Trump, set to assume office on Jan. 20, reportedly wants to delay enforcing the ban to allow negotiations. Despite this, ByteDance faces growing pressure to comply with the law or risk losing access to a significant market.
TikTok US Valuation and Elon Musk’s Role
Analysts from Bloomberg Intelligence estimate TikTok’s US operations to be worth $40 to $50 billion. Musk, who owns the social media platform X, has previously voiced concerns about banning TikTok. In April, he commented,
Elon Musk on TikTok Ban. Source: XWhile there is no confirmation of discussions involving Musk, the report suggests the Chinese government may consider this option if ByteDance is forced to sell. ByteDance, however, has not acknowledged whether it is aware of any such discussions.
RESTRICT Act Sparks Concerns in Crypto Community
U.S.-based think tank Coin Center has raised alarms over the RESTRICT Act, comparing it to the International Emergency Economic Powers Act (IEEPA). Coin Center believes the act grants extensive authority to ban activities linked to “foreign adversaries” with minimal oversight. They caution that its potential impact on the cryptocurrency sector cannot be ignored.
RESTRICT Act Overview. Source: U.S. SenateAustin Federa, head of strategy at the Solana Foundation, highlighted the troubling implications of the act’s rhetoric. Specifically, he warned that its broad language could lead to significant restrictions affecting U.S. citizens.
Austin Federa on TikTok Ban. Source: XCrypto Influencers Speak Out
Bitcoin YouTuber CryptoWendyO suggested the act may not be primarily about TikTok but could target cryptocurrencies, NFTs, and other digital assets. She tweeted, “Banning them is the goal.”
Others in the crypto space have also voiced concerns that the act might be used to block platforms like TikTok, which are critical for spreading awareness of crypto projects. Above all, the broader implications for free communication and the future of digital currencies remain a major concern for industry participants.
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