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TikTok U.S. Will Sale to Elon Musk, $50 Billion Deal in!

by Becky
2025-01-15
in Tech & Science
A A
tiktok elon musk

(X/tech.ninjaz)

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Jakarta, Indonesia Sentinel — TikTok presence in the United States faces a critical juncture as reports suggest the popular social media platform may soon be acquired by Elon Musk. The potential sale stems from U.S. legislation mandating ByteDance, TikTok’s Chinese parent company, to divest its American operations due to national security concerns.

According to a report from VOA Indonesia on January 15, 2025, Musk’s X Corp., the parent company of the platform formerly known as Twitter, is under consideration to purchase TikTok. The estimated value of TikTok’s U.S. operations is between $40 billion and $50 billion, approximately IDR 815 trillion.

A Controversial Move

The divestment requirement arises from allegations that TikTok facilitates data collection and espionage on behalf of Beijing and serves as a tool for propaganda. Both ByteDance and the Chinese government have denied these claims.

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In response to the divestment order, TikTok has challenged the legislation in court, escalating the case to the U.S. Supreme Court. Oral arguments began last week, with justices expressing skepticism toward TikTok’s defense that the forced sale infringes on First Amendment rights.

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Musk’s Role and Challenges

As the world’s richest person, Musk’s involvement in the potential acquisition raises questions about his ability to finance the deal. Observers speculate that Musk may need to offload other assets to secure funding. However, details about the financing remain unclear.

Musk’s influence in Washington is also under scrutiny. A close ally of President-elect Donald Trump, Musk is expected to play a pivotal role in shaping U.S. tech and trade policies during Trump’s upcoming administration.

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China’s Perspective

China is reportedly considering the implications of a merger between TikTok and Musk’s X platform. Such a deal would integrate TikTok into a broader social media ecosystem, potentially transforming the digital landscape.

Despite this, the prospect of a sale to Musk adds a layer of complexity given his existing ties to China. Tesla, Musk’s electric vehicle company, has significant operations in China, including a major factory and a large consumer base.

What’s Next for TikTok?

The U.S. government has made its stance clear: TikTok must either change ownership or cease operations in the country. The law, enacted last year, was set to take effect on January 14, 2025, one day before Trump’s inauguration.

While the Supreme Court deliberates TikTok’s appeal, the Biden administration had previously argued that the platform poses a national security threat. Musk’s potential acquisition would offer a resolution but raises questions about the implications for data privacy, market dynamics, and U.S.-China relations.

 

(Becky)

Tags: ByteDanceChinaElon MuskpropagandaTiktokX
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