Elon Musk denies interest in buying TikTok, rejects sale rumors

(Web Desk): Elon Musk has denied rumors that he is interested in buying TikTok, rejecting reports that Chinese officials had considered selling the app to him to prevent a ban in the United States.

At the WELT Economic Summit in Germany on January 28, the CEO of Tesla and SpaceX stated that he has not made any offer for TikTok and does not see a strong reason to acquire it.

Musk explained that even if he were to think about buying TikTok, his first step would be to check whether the app’s algorithm is helpful or harmful to users. He made these comments in a video released on January 31. His statement came after reports from Bloomberg and the Wall Street Journal suggested that Chinese officials had informally discussed the possibility of selling TikTok to Musk. One idea, according to Bloomberg, was that Musk’s social media platform, X (formerly Twitter), could take over TikTok to avoid a potential ban in the US. However, TikTok quickly denied these claims, calling them “pure fiction.”

TikTok, which has about 170 million users in the US, has faced national security concerns for years. US lawmakers have expressed worries that the app’s Chinese parent company, ByteDance, could be forced to share user data with the Chinese government. In April 2023, former President Joe Biden signed a bill that gave ByteDance a deadline to sell TikTok or face a ban in the US. This deadline was set for January 20, 2024, but former President Donald Trump extended it by 75 days, giving TikTok more time to find a non-Chinese buyer. The new deadline is now in April 2024.

Despite these concerns, ByteDance has repeatedly stated that it does not plan to sell TikTok. However, some investors have shown interest in buying the app. One of them is Kevin O’Leary, a billionaire investor from the TV show Shark Tank, who, along with billionaire Frank McCourt, reportedly made a $20 billion offer for TikTok. YouTube creator MrBeast (Jimmy Donaldson), who is the most-followed YouTuber, has also hinted at joining an investment group that could potentially buy the platform.

Musk, who bought Twitter (now called X) for $44 billion in 2022, explained that he acquired the platform to “preserve freedom of speech.” However, he does not think the same reasoning applies to TikTok. He said, “I don’t acquire things just for economic reasons” and added that he is not sure what purpose acquiring TikTok would serve beyond making money.

TikTok’s value is largely tied to its algorithm, which decides what content users see and how they interact with it. Analysts estimate that TikTok’s US assets, excluding its algorithm, are worth between $40 billion and $50 billion. The algorithm is considered the most valuable part of the app because it drives content recommendations and user engagement.

As the deadline for ByteDance to sell TikTok approaches, discussions about the app’s future continue. Some lawmakers are pushing for a ban on TikTok, while others want the app to be sold to a US-based company so it can continue operating. With Musk making it clear that he is not interested in buying TikTok, other investors may take the lead in trying to acquire the app. The future of TikTok in the US remains uncertain as these talks move forward.