Technology

TikTok Denies Sale of U.S. Operations to Elon Musk

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date
16th January 2025
Last update
date
5:01 am
19th January 2025
TikTok Denies Sale of U.S. Operations to Elon Musk
Media outlets reported that TikTok might sell to Elon Musk

Renowned media outlets, including Bloomberg, CNN, and the Wall Street Journal, reported that Chinese officials initiated preliminary discussions about possibly selling TikTok's U.S. operations to billionaire Elon Musk. However, TikTok dismissed the reports, calling the claims “pure fiction.”

U.S. Supreme Court TikTok Ban Case

The U.S. Supreme Court is deliberating a law that could force TikTok's China-based owner, ByteDance, to sell its U.S. operations by January 19 or face a ban, affecting 170 million American users.

News of TikTok sellout
A screenshot of NPR’s article

If the court rules on the law, as a lower court did last month, TikTok's U.S. operations could cease.

TikTok lawyer Noel Francisco told justices, “On January 19th, as I understand it, we shut down.”

While this does not mean the app will vanish instantly, accessing the platform could become increasingly difficult, warns Kate Ruane, director of the Free Expression Project at the Center for Democracy and Technology.

TikTok officials suggest users may encounter a message stating the service is unavailable in the U.S. or experience issues like slow performance and frequent crashes when using the app. 

TikTok Firm to Sell U.S. Operations to Elon Musk

Prominent media outlets, including Bloomberg, CNN, the Financial Times, and The Wall Street Journal, reported that Chinese officials have held discussions about selling TikTok's U.S. operations to billionaire Elon Musk if the app cannot avoid an impending ban. Another possibility involves Musk acting as a broker in the sale.

According to Bloomberg, Beijing prefers TikTok to remain under the control of its Chinese parent company, ByteDance, but has considered alternative options, including a sale to Musk.

News of TikTok sellout
A screenshot of Bloomberg’s article

The Financial Times reported that officials discussed Musk's potential role as an intermediary between ByteDance and a buyer to prevent TikTok's shutdown in the U.S.

News of TikTok sellout
A screenshot of Financial Times’ article

TikTok Dismissed the Claim as “Pure Fiction”

TikTok refuted reports claiming that China is considering allowing a sale of its U.S. operations to Elon Musk, calling the claim “pure fiction.” 

A TikTok spokesperson told BBC, “We can’t be expected to comment on pure fiction.” The company has consistently stated it will not sell its U.S. operations.

News of TikTok sellout
A screenshot of BBC’s article

Dispute Between Republicans and Democrats over TikTok’s Fate

The Biden administration has argued that without a sale, TikTok could be used by China for spying and political manipulation. 

However, the company has repeatedly denied any influence from the Chinese Communist Party.

TikTok and ByteDance have also dismissed the national security claims, arguing that the law violates the First Amendment. 

In a filing to the Supreme Court, they stated that if the law is allowed to stand, “Congress will have free rein to ban any American from speaking simply by identifying some risk that the speech is influenced by a foreign entity.”

Last month, former President Trump urged the Supreme Court to delay its decision until he takes office, allowing him to seek a “political resolution.” 

News of TikTok sellout
A screenshot of BBC’s article

Trump's lawyer filed a legal brief stating that Trump “opposes banning TikTok” and “seeks the ability to resolve the issues at hand through political means once he takes office.”

According to Reuters, many of Trump's Republican allies have called for the opposite.

“This is the most significant free speech case in at least a generation,” said Timothy Edgar, a former U.S. national security and intelligence official who has worked under both Republican and Democratic administrations.

“If we consider that there are 170 million active monthly users of TikTok in the United States, the volume of free speech at risk is the largest of any Supreme Court case in American history,” added Edgar, who now teaches cybersecurity at Brown University and joined a brief supporting TikTok in the case.

Moreover, two Democratic lawmakers, Senator Edward Markey and Representative Ro Khanna, recently urged Congress and President Joe Biden to extend the January 19 deadline. 

During a Supreme Court hearing last week, justices seemed inclined to uphold the legislation and maintain the deadline.

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