According to a Bloomberg report, the Chinese government is considering a plan in which Elon Musk could take over TikTok’s U.S. operations to prevent the app from being banned. This potential move comes as the U.S. Supreme Court deliberates on a law requiring the Chinese company ByteDance to divest its U.S. business by January 19, under the threat of sanctions on internet service providers supporting TikTok in the country.
This backup plan, still in its early stages, would see Musk, who owns the X platform (formerly Twitter), taking the reins of both X and TikTok’s U.S. operations. However, Chinese authorities have yet to make a final decision, and it is unclear if ByteDance is aware of these discussions or TikTok’s involvement in the plans.
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The legal battle over TikTok’s future in the U.S. intensified recently, as the Supreme Court held oral arguments on a law that could ban the app. Signed by President Joe Biden in April, the law has been challenged by TikTok’s legal team on the grounds of violating free speech rights. Meanwhile, the government argues that ByteDance’s ownership poses a national security threat.
With the court likely to support the government’s stance, TikTok may seek a political resolution through former President Donald Trump, who has shifted his position on the app. Despite advocating for a TikTok ban during his first term, Trump has recently reversed his stance and called for a delay in the Supreme Court’s ruling to allow time for a political solution.
In addition to Musk’s potential involvement, last week saw the emergence of “The People’s Bid for TikTok,” a proposal led by billionaire investor Frank McCourt. McCourt’s plan seeks to buy TikTok’s U.S. assets from ByteDance, restructuring the company to prioritize the privacy of American users. This includes moving to U.S.-based digital infrastructure and abandoning the controversial algorithm, addressing national security concerns. The bid is currently seeking backing from private equity firms and large-scale financing from major U.S. banks.
