Elon Musk is being eyed by Chinese authorities as a potential buyer of TikTok as the app faces a U.S. ban starting this Sunday, according to reports.
Bloomberg reported, citing people familiar with the matter, that Chinese officials are weighing up an option that would see its business in America sold to Musk.
TikTok has strongly disputed the reports. In an email shared with Newsweek, a spokesperson for TikTok said: "We cannot be expected to comment on pure fiction."
However, the Chinese government, which has a controlling 'Golden Share' in ByteDance, is exploring alternatives, including a possible sale to Musk, as part of ongoing discussions about how to respond to the potential U.S. ban, according to Bloomberg. A scenario allegedly under discussion involves the X app owned by Musk taking control of TikTok's U.S. operations and integrating the two platforms, Bloomberg and The Wall Street Journal have reported, citing unnamed sources.
It is unclear at this time if ByteDance is aware of these discussions, or if the SpaceX chief and TikTok have engaged in talks of any kind.
Newsweek has reached out to the press department for Musk's Tesla via email for comment.
Stay tuned to Newsweek's live blog for the latest updates.
If Elon Musk were to acquire TikTok, it could lead to several significant changes and innovations on the platform. Here are some potential aspects of such an acquisition: 1. **Content Moderation Overhaul**: Musk is known for his emphasis on free speech. This could result in a shift in TikTok's content moderation policies, potentially allowing for a broader range of content, but also raising concerns about misinformation and harmful content. 2. **Integration with Other Platforms**: Musk might integrate TikTok with his other ventures, such as Twitter (now X). This could lead to cross-platform features, allowing users to share TikTok videos directly on Twitter, or creating a unified social media experience. 3. **Monetization Changes**: Under Musk's leadership, TikTok could see new monetization strategies for creators, possibly involving cryptocurrency or innovative advertising models that align with his interest in technology and finance. 4. **Technological Enhancements**: Musk could leverage his expertise in AI and technology to enhance TikTok's algorithm, improving content recommendations and user engagement through advanced machine learning techniques. 5. **Focus on Innovation**: Expect a push for creative tools and features that encourage user-generated content, possibly introducing new formats or interactive elements that keep users engaged and attract new audiences. 6. **Regulatory Challenges**: Any acquisition would likely face scrutiny from regulators, especially given TikTok's previous challenges in various markets. Musk's approach to navigating these challenges could involve more transparent communication and lobbying efforts. 7. **Cultural Shift**: Musk's unique persona and approach to business could influence the culture of TikTok, impacting how creators interact with the platform and each other, potentially fostering a more entrepreneurial spirit among users. Overall, a Musk-led TikTok could become a dynamic blend of innovation, freedom of expression, and technological advancement, but it would also bring new challenges and controversies.
"A potential acquisition of TikTok by a globally known influential like Musk could reshape how some people view social media's evolving role in connecting global communities and sharing content," Anindya Ghose told Newsweek over email. He is the Heinz Riehl Chair professor of technology and marketing at New York University's Leonard N. Stern School of Business.
According to Ghose, "This could lead to major shifts in the platform's fundamental operations and the overall experience for users, influenced by his management style at X." He speculated that users might encounter the implementation of paid verification systems, alterations in content moderation practices, and the addition of new e-commerce functionalities. Furthermore, Ghose noted, "Content creators may have to adapt to updated monetization strategies and guidelines."
"The platform's signature recommendation algorithm could undergo modifications to align with free speech and data usage. However, I can imagine that such an acquisition could face regulatory hurdles, including TikTok's high valuation, complex regulatory requirements across multiple jurisdictions, and potential resistance from ByteDance. Regulatory scrutiny could focus on market concentration and content moderation practices, particularly in the US and EU markets," Ghose said.
He added: "A TikTok ban could have significant implications across many dimensions. From a commercial perspective, a ban on TikTok would create significant market opportunities for competing apps like Instagram Reels, YouTube Shorts, Facebook Reels and emerging social-media apps to capture TikTok's user base and advertising revenue.
"The economic repercussions would reach businesses that leverage TikTok for marketing and engaging with customers, compelling them to adjust their social media strategies and reallocate their advertising funds. Firms that focus on TikTok marketing services would have to adapt their business approaches. For users, the impact would be felt by the hundreds of millions who rely on the platform for entertainment, learning, and social interaction. Numerous users have cultivated substantial followings and communities that would face disruption," Ghose stated.