TikTok has dismissed a report that China could allow a potential sale of the social media company’s US operations to billionaire Elon Musk, calling it “pure fiction.” The ByteDance-owned company’s comments come in response to a Bloomberg report claiming that Chinese officials are exploring options to sell US TikTok operations to Musk as the video-sharing platform faces a US law that requires There is an imminent need for Chinese disinvestment.
Last year, the Joe Biden administration passed a law requiring TikTok’s parent company ByteDance to either sell the hugely popular platform or shut it down. It will take effect Sunday — a day before President-elect Donald Trump takes office.
ByteDance has said it will not sell TikTok’s US operations. Asked about the validity of the latest report, a TikTok spokesperson told BBC News: “We can’t be expected to comment on pure speculation.”
what the report says
Bloomberg, citing unnamed sources familiar with the matter, reported that a scenario is being discussed in Beijing where Musk’s social media company X would buy TikTok from Chinese owner ByteDance and combine it into the platform formerly known as Twitter. Was known.
The report estimates the value of TikTok’s US operations at between $40 and $50 billion.
Although Musk – who is a close ally of US President-elect Donald Trump – is currently ranked as the world’s wealthiest person, Bloomberg said it is unclear how he could execute the transaction, or Will they need to sell other assets?
X did not immediately respond to the report.
Why does America want to ban TikTok?
The US government alleges that TikTok allows China to collect data and spy on users and is a medium to spread disinformation, a claim China and ByteDance strongly deny.
TikTok has challenged the law brought in by the Biden administration and has appealed to the US Supreme Court, where oral arguments were heard on Friday.
Trump has opposed the ban – despite supporting it during his first term – partly on the grounds that it could help Facebook, which he has accused of helping him lose the 2020 election.
Last month, he urged the Supreme Court to delay its decision on TikTok’s future in the US until he takes office on January 20 so he can seek a “political solution.” According to legal filings filed by his lawyers, Trump “opposes banning TikTok” and “wants the ability to resolve existing issues through political means after taking office”.
It came a week after Trump met with TikTok Chief Executive Shou Zi-Chi at his Mar-a-Lago estate in Florida.
