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Trump to open sales of TikTok to Elon Musk

Obah Sylva by Obah Sylva
January 22, 2025
in Global, Tech
Reading Time: 3 mins read
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In a surprising twist to the ongoing saga surrounding TikTok, reports have emerged that President Donald Trump is open to billionaire Elon Musk acquiring the social media platform’s U.S. operations. This development comes as the clock ticks down on a potential ban of TikTok in the United States, prompting discussions on the implications of such a high-profile sale.

TikTok, owned by the Chinese company ByteDance, has been under scrutiny in the U.S. for its data privacy practices and national security concerns due to its Chinese ownership. The U.S. government had set a deadline for ByteDance to divest its U.S. operations or face a ban, a situation that led to numerous discussions about potential buyers.

Recent web reports suggest that Chinese officials have considered Musk as a potential buyer if TikTok fails to fend off the ban, positioning him as a figure who could maintain the app’s availability in the U.S. while perhaps serving broader geopolitical interests.

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President Trump, who has had a fluctuating stance on TikTok, has now publicly stated his openness to Musk or even Larry Ellison buying TikTok as part of a joint venture, potentially saving the app from a ban. This move could be seen as a strategic play by Trump to leverage his relationship with Musk, who was a significant financial supporter during his re-election campaign, donating over $250 million.

Trump’s endorsement of Musk could also be interpreted as an attempt to retain influence over digital platforms, especially those with significant youth engagement, which played a role in his recent electoral success. This perspective is echoed in posts on X, where users discuss the potential political and economic benefits of such a deal for both Trump and Musk.

For Elon Musk, acquiring TikTok would not only expand his social media empire but also potentially provide a vast amount of user data for his AI ventures through xAI. Integrating TikTok with X (formerly Twitter) could lead to a massive increase in user base and advertising revenue, a point of contention among tech analysts who speculate on the changes Musk might bring to the platform’s operations, including content moderation policies and monetization strategies.

Read also: List of African Americans to be featured at Trump’s ball despite backlash

The sale of TikTok to Musk, however, isn’t without hurdles. There’s the matter of ByteDance’s algorithm, which is considered a key asset and one that China might be reluctant to relinquish. Moreover, any deal would likely face intense regulatory scrutiny in the U.S., focusing on market concentration, data privacy, and national security.

Furthermore, the valuation of TikTok’s U.S. operations is speculated to be between $40 billion to $50 billion, a sum that would require significant financial arrangements, even for someone as wealthy as Musk.

Public reaction on platforms like X has been mixed, with some seeing this as a clever maneuver to keep TikTok alive while others are skeptical about the implications of Musk having control over yet another major information platform. Political analysts on X note that this could be Trump’s way of positioning himself favorably in negotiations with China, using TikTok as leverage.

The potential sale of TikTok’s U.S. operations to Elon Musk under Trump’s administration represents a fascinating intersection of technology, politics, and international relations. While it offers a temporary reprieve for TikTok users in the U.S., the long-term effects on free speech, data privacy, and market competition remain to be seen. As this story unfolds, the world watches to see how these billionaire-led negotiations might reshape one of the most influential social media landscapes globally.

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