The Chinese government is reportedly considering a plan to let Elon Musk buy TikTok’s U.S. business if it cannot avoid being shut down by the U.S. government.
Zoom out: TikTok has until January 19 to either sell its U.S. business or be forced to close after Joe Biden signed the Protecting Americans from Foreign Adversary Controlled Applications Act into law last year.
Back up: Last year, Musk wrote on X: “In my opinion, TikTok should not be banned in the USA, even though such a ban may benefit the 𝕏 platform.”
But wait… A TikTok spokesman said the report of a potential sale was “pure fiction.” It’s important to note this denial came from TikTok, while the report says China [the government] is interested in the sale to Musk. In China, companies are subservient to the state.
Why would China trust Musk? Musk’s Tesla has operated a manufacturing plant in Shanghai since 2019, which accounts for half of its global car production. Perhaps China feels like they have leverage over how he would manage the company.
Chumming the waters: Shark Tank star Kevin ‘Mr. Wonderful’ O’Leary is also making a serious bid to purchase the social media app, even meeting with President-elect Donald J. Trump to discuss his plans to make it “a platform that prioritizes PEOPLE over algorithms.”
Real talk from G: I might be in the minority here, but I don’t like the idea of Musk buying TikTok for two key reasons:
- I like competition. Monopolies stifle competition and innovation and ultimately put the user/consumer in a worse-off position if the owner makes poor decisions.
- There’s something off-putting about China saying they trust Musk enough to take their app.