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After previously rejecting the idea of ​​a TikTok sale to avert a looming ban, the Chinese government may have found an owner it can live with: Elon Musk.

Chinese officials — who are expected to have a say in whether and how TikTok’s U.S. assets might be sold to an American buyer — are discussing a possible option that involves at least part of the U.S. version of the app to sell to Musk’s X reports Bloomberg and the Wall Street Journal. CNN has not independently confirmed the discussions.

The discussions would mark a significant reversal in China’s stance on a TikTok sale, just days before the law that could ban the app in the United States takes effect. To avoid a ban, the law would allow TikTok’s parent company, ByteDance, to sell to a U.S.-based owner.

The reports come after the Supreme Court indicated last week that it would uphold the law on national security grounds, despite TikTok arguing that it constituted an illegal crackdown on free speech. China’s Commerce Ministry previously said it would “strongly oppose” a forced sale of TikTok, even as other potential buyers raised their hands. TikTok parent company ByteDance has also previously indicated that the app is not for sale.

ByteDance and Musk did not respond to requests for comment on the reports. And TikTok crushed them; Spokesman Michael Hughes told CNN: “We cannot be expected to comment on pure fiction.”

Still, there are logical reasons why Musk, ByteDance and China might all find it in their best interest to facilitate a sale of TikTok’s assets to the X owner.

ByteDance may just want to make money something for the US version of TikTok before it loses access to the valuable American market.

For China, selling to Musk could mean putting TikTok in the hands of an ally whose business empire is heavily dependent on the Chinese market and who has the ear of new President Trump, at a time when China is looking for leverage in tariff negotiations seeks .

For Musk, taking over TikTok and maintaining Americans’ access to the app at the last minute, after TikTok fought the ban on First Amendment grounds, would directly reinforce the billionaire’s (often hypocritical) image of himself as a defender of free speech contribute. It would give him control of an even larger and more influential social media platform than X, which he has already successfully used to advance his own interests, including supporting Donald Trump’s re-election. And Musk already has a team at X – however small – familiar with managing a social media algorithm and selling ads.

We Maybe I’ll hear rumors about it now to see what people think.

“I bet that either Musk or the Chinese are waiting to see the reaction,” James Andrew Lewis, director of the strategic technologies program at the Center for Strategic and International Studies, said in an email to CNN. “The Chinese are probably considering where it would fit into a larger deal with Trump, but I can’t imagine them giving it away for free.”

But such a deal could still face real hurdles, including securing the money to buy an app from Musk, according to Wedbush analyst Dan Ives. The deal could cost $40 billion to $50 billion.

ByteDance is expected to need approval from the Chinese government to sell TikTok’s U.S. operations, as export restrictions could prohibit the sale of sensitive technology such as the app’s recommendation algorithm without a license.

And if the company’s Supreme Court lawsuit fails, Musk could be seen as the most China-friendly American buyer, given the significant business he does in the country.

China is Tesla’s second largest market; In the third quarter of 2024 alone, Tesla generated sales of $5.7 billion in China. This also applies to Tesla’s Shanghai Gigafactory, which Musk has praised as making the company’s highest-quality cars one of the company’s most productive plants. And the company is also in the process of building a massive battery factory in Shanghai.

Musk has held several meetings with Chinese officials in recent years, including a conversation with Chinese Premier Li Qiang in Beijing last April in which the official praised Tesla as a “successful model” for U.S.-China cooperation. “Tesla is willing to further deepen cooperation with China and achieve more win-win results,” Musk told Li during the meeting.

Although Musk has portrayed himself as a champion of free speech in the United States, he has remained relatively silent on the issue when it comes to China, which has arrested Chinese leader Xi Jinping’s political rivals on an unprecedented scale since Xi came to power in 2012 .

Musk also referred to Taiwan as an “integral part of China,” which angered Taiwan’s leadership.

“One of the biggest investors in China from an infrastructure perspective is Tesla, so Musk’s relationship within Beijing is probably the strongest of any US businessman, aside from Apple’s Tim Cook,” Ives told CNN. Still, Ives said China was unlikely to allow the sale of TikTok with its algorithm, which he called the popular app’s “key DNA.”

China may also want to use Musk to get to Trump. A TikTok deal could serve as leverage in negotiations with the new administration to avert the massive tariffs the president-elect has threatened on goods imported from the country that could burden large companies produce fewer goods There. After donating to Trump’s re-election campaign, Musk became one of his closest advisers and reportedly participated in conversations between the new president and other world leaders.

And if Trump gives his blessing, the new president could also use the deal to claim he has kept his promise to save TikTok for Americans. The law to ban or sell TikTok gives the president the opportunity to decide whether a so-called “qualified divestiture” of the app has actually occurred to allow TikTok to continue operating in the United States.

Musk’s “significant financial resources, established business relationships in China through Tesla and prominence in the social media industry through said in an emailed comment.

For Musk and X, the TikTok acquisition could be a “golden asset,” Ives said. TikTok’s 170 million American monthly users would be a big boost for Musk’s social media company. And their videos could also provide useful training data for Musk’s artificial intelligence company, xAI.

A big question that overshadows all discussions about a Musk TikTok purchase is how he would afford it.

Although Musk is one of the richest people in the world, much of his wealth is tied up in shares of Tesla and his other companies.

And after his loss-making takeover of .

Musk’s $44 billion purchase of Twitter was always overpriced, and the billionaire followed suit Post-purchase decisions placed additional pressure on the value of the social media company. This has reportedly left the banks that had lent him the money to buy Twitter unable to offload the debt without losing money, leaving major blemishes on their balance sheets.

There are also limits on how Musk can use the $170 billion worth of Tesla stock he fully owns as collateral for loans. Still, banks may be interested in working with Trump’s “first buddy,” whose other companies are also expected to benefit from his connection to the White House. Musk’s net worth has skyrocketed since the election.

Even if Musk managed to buy the app, there’s no telling whether TikTok users would stay under a new owner.

Many frustrated users fled Musk himself has also fueled racist conspiracy theories on the app.

Some TikTok users reacted with enthusiasm to reports of Musk’s potential takeover, including one user who posted a dance video celebrating the news.

“The idea of ​​TikTok disappearing is scary. But do you know what’s scarier? It belongs to Elon Musk,” a user named Omie said in a video on Tuesday. “I would rather this app be banned than this bastard owning it. I mean, honestly, the idea that this could become Twitter is scary.”

Another user named Mo said in a video, “I love TikTok bro, but why does it have to be Elon Musk?” He’s already breaking Twitter.” One commenter said on that video, “I prefer my information in China than in Elon.”

And TikTok user Dash Dobrofsky said in a video captioned “Oh dear God please no” that Musk’s purchase of TikTok “sounds like a terrible idea…It would undoubtedly make Elon Musk the most powerful man in the world.”

Such a user revolt could ultimately undermine the value of the platform for Musk and any investors he might attract to buy TikTok.