- There has been a rumor of negotiations regarding the sale of TikTok to Elon Musk
- However, ByteDance’s representative refused to comment on “pure fiction”
Recently, Bloomberg posted that US attempts to buy TikTok have reignited and that Elon Musk could be involved. This is all against the backdrop of earlier multiple proceedings against TikTok in the US, and the expectation of renewed action from Donald Trump’s administration.
However, ByteDance representative has responded to Variety regarding their inquiry and indicated that while they cannot know exactly what the Chinese government is discussing in the context of the new administration, the sale of the platform to Elon Musk is fiction.
More About the Proceedings Between the US and TikTok
The US has already been fighting against TikTok because of the Chinese government’s ownership of ByteDance’s subsidiary, which gives it influence over the company’s strategy and operations.
However, getting an injunction or sale has failed, as TikTok argues that the control only applies to its Chinese subsidiary Douyin Information Service Co. and has nothing to do with ByteDance’s operations outside of China, and Beijing’s export rules prevent Chinese companies from selling their software algorithms, and TikTok has those.
For his part, Elon Musk has already commented on this:
And yet TikTok faces a coming deadline, due to a law that takes effect Jan 19 and prohibits Apple and Google’s app stores, as well as web hosting services, from hosting or distributing TikTok in the U.S., unless Chinese parent ByteDance relinquishes its ownership stake.
TikTok challenged the law on First Amendment grounds, and after losing an appeals court ruling, is seeking an emergency injunction from the Supreme Court to block the law from taking effect.
Trump, in an amicus brief filed on his behalf with the Supreme Court on Friday, asked the high court to delay the Jan. 19 deadline, the day before the inauguration, to “provide more room to address these issues.”
And so against that backdrop, a fresh update allegedly came in, whereas Bloomberg pointed out:
“Chinese officials are evaluating a potential option that involves Elon Musk acquiring the US operations of TikTok”
However, the Cyberspace Administration of China and China’s Ministry of Commerce, government agencies that could be involved in decisions about TikTok’s future, didn’t respond to requests for comment.
ByteDance representative refused to respond to such unfounded claims:
“We can’t be expected to comment on pure fiction.”
Conclusion
The unfinished business will likely tilt one way or the other once Donald Trump gets the office. However, whether he will continue the trade war with China, whether TikTok will become an exception, or, on the contrary, one of the central topics, and how China will view it – are still open questions.
Be aware and stay tuned.
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