Emmanuel OchayiChinese authorities are currently debating whether to sell TikTok, the popular social media app owned by ByteDance, to Elon Musk. This decision comes after the U.S. Supreme Court ruled to potentially ban the app on January 19, a move that could affect millions of users in the United States.
Reports suggest that while Beijing prefers TikTok to remain under ByteDance’s ownership, officials are considering the sale to Musk as a backup plan. “Senior Chinese officials are now looking into this option, understanding that the Supreme Court is likely to uphold the ban,” the report stated. If the sale proceeds, TikTok US could be integrated into Musk’s X platform, potentially boosting X’s ad revenue.
Join our WhatsApp ChannelThe Potential Impact of the U.S. Ban
The U.S. government has long been critical of TikTok, citing national security concerns over its ties to China. The Supreme Court ruling, which may be finalised on January 19, could prevent new users from downloading the app on platforms like Apple or Google Play. However, existing users would still be able to access the service.
The U.S. government and TikTok itself agree that if the ban is enforced, the app will eventually degrade over time. The app would no longer be able to offer vital support services, making it unusable in the long term. This growing uncertainty has pushed Chinese officials to explore alternative options, including the potential sale of TikTok to a high-profile buyer like Musk.
Musk’s X and TikTok US: A Potential Merge
If the deal goes through, TikTok US might be absorbed into Musk’s X platform, which could result in a strategic expansion of Musk’s ad revenue system. “TikTok US could be merged into X’s ad revenue program, boosting its advertising capabilities,” the report said.
This move would mark another step in Musk’s broad ambitions for X, which has already shifted from being Twitter to a larger platform for various social media services. Musk’s growing influence in the tech world could make him an appealing buyer for TikTok, especially as ByteDance faces mounting pressure from both the U.S. and Chinese governments.
Donald Trump’s Role in the Ban
Incoming U.S. President Donald Trump was an early proponent of banning TikTok, a decision rooted in concerns over data privacy and national security.
READ ALSO: TikTok App Potential Ban: What Will Happen To Your Phone?
However, Trump has recently changed his stance. “Trump has urged the U.S. Supreme Court to delay the ban’s implementation, giving him time to negotiate a political solution,” the report added. His efforts to mediate a resolution highlight the ongoing political complexity surrounding the company’s fate in the U.S.
Stocks to Watch Following the TikTok Sale Reports
As discussions about the sale of TikTok to Musk continue, several stocks are likely to be affected. Key stocks include:
- ByteDance Ltd. – Parent company of TikTok, potentially in the process of selling its U.S. assets.
- Elon Musk’s X (formerly Twitter) – Likely to experience changes if TikTok US is integrated into X’s ad revenue system.
- Apple and Google – Affected by the potential halt in new TikTok downloads in the U.S.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
