TikTok Denies ‘Pure Fiction’ Report Of Sale To Elon Musk

There has been speculation about the ownership of TikTok’s US business, after it was reported a sale was being considered to the world’s richest man.

On Monday Bloomberg had reported that the Chinese government was considering a plan that would see Elon Musk acquire TikTok’s US operations, in order to keep the app from being effectively banned in America.

US President Joe Biden in April 2024 had signed a bill that gave Chinese owner ByteDance up to a year to divest TikTok, or face a nationwide ban across the United States.

ByteDance is facing a divest deadline for a sale of TikTok by Sunday 19 January 2025. After that deadline, Internet service providers (ISPs) would be penalised for supporting TikTok’s operations in the country.

Sale To Musk?

According to the Bloomberg report, the sale of TikTok’s US operations to Elon Musk is a contingency plan – one of several options China is reportedly exploring.

Under the plan, Musk apparently would oversee both X (formerly Twitter) and TikTok’s US business, Bloomberg reported.

However, Chinese government officials haven’t yet decided on whether it would proceed, the report stated, noting the plan is still preliminary.

It is also unclear whether ByteDance knows about the Chinese government’s plans and TikTok and Musk’s involvement in the discussions, the report said.

Senior Chinese officials are also debating contingency plans involving TikTok’s future in America, as part of larger discussions about working with President-elect Donald Trump, Bloomberg noted.

‘Pure Fiction’

But TikTok has moved quickly to quash the report.

A TikTok spokesperson said in an email to CNBC, “We can’t be expected to comment on pure fiction.”

X didn’t immediately respond to a request for comment.

Supreme Court

Last month a US appeals court had rejected TikTok’s effort to overturn the law that would force it to divest its business in the country or face a ban.

TikTok however took its appeal to the US Supreme Court, after previously warning that the US ban would have ‘staggering’ effects.

The Supreme Court late last week heard oral arguments from both sides, but it was reported that the Supreme Court appeared to side with the US government over its divest or ban order.

It remains to be seen whether Trump, who in his first term had favoured a ban on TikTok, will intervene, after he since has changed his mind on a TikTok ban.

Late last month, Trump had urged the Supreme Court to intervene and forcibly delay implementation of Biden’s ban to give him time to find a “political resolution.”

Last week TikTok was reportedly planning to expand its e-commerce operation, TikTok Shop, into Mexico beginning in February.

Also last week, it was reported that a consortium lead by an American billionaire (Frank McCourt) has made a takeover approach to acquire TikTok’s US assets.