https://www.bloomberg.com/news/articles/2025-01-14/china-discusses-sale-of-tiktok-us-to-musk-as-one-possible-option
The talks in Beijing suggest that TikTok’s fate may no longer be in ByteDance’s sole control, said the people. Chinese officials recognize they will face tough negotiations with the Trump administration over tariffs, export controls and other issues, and they see the TikTok negotiations as a potential area for reconciliation, they said.
The Chinese government holds a so-called golden share in a ByteDance affiliate that gives it influence over the company’s strategy and operations. TikTok maintains that the control only applies to the China-based subsidiary Douyin Information Service Co., and has no bearing on ByteDance operations outside China. Still, Beijing’s export rules prevent Chinese companies from selling their software algorithms, like the one integral to TikTok. Because the Chinese government would have to approve of a sale that includes TikTok’s valuable recommendation engine, it has a significant voice in any possible deal.
TikTok’s US operations could be valued at around $40 billion to $50 billion, Bloomberg Intelligence analysts Mandeep Singh and Damian Reimertz estimated last year. That’s a substantial sum even for the world’s richest person. It’s not clear how Musk could pull off such a transaction, whether it would require the sale of other holdings, or whether the US government would approve. He paid $44 billion for Twitter in 2022, and is still paying off sizable loans.
Musk has a positive reputation among many ByteDance employees in China, according to a person familiar with the matter. He is seen as a very successful entrepreneur, who has experience engaging with the Chinese government through his Tesla Inc. business, the person added.
= new reply since forum marked as read