TikTok Ban Deadline Approaches
TikTok could be banned in the US if its China-headquartered owner ByteDance does not sell the app by January 19th.
On Friday (January 10), social media app lawyers tried to convince the US Supreme Court to either strike down or temporarily block a law that could lead to TikTok being banned from the market unless it is sold on national security grounds.
A Supreme Court decision is expected this week, but as the deadline for sale or ban approaches, one of the app’s potential saviors in the United States has now become a tech billionaire: Elon Musk.
According to reporting from Bloomberg Monday (Jan. 13), citing sources: “Chinese officials are evaluating a potential option that would involve Musk acquiring TikTok’s U.S. unit if the app is banned.”
Bloomberg added that “it is unclear whether the multi-billionaire, TikTok and ByteDance have had any discussions.”
In response to the media’s publication after Bloomberg‘s report, a TikTok spokesperson stated: “We cannot be expected to comment on pure fiction.”
Potential Acquisition by Elon Musk
TikTok’s parent company previously stated it had no intention of selling the app, but according to reporting on Bloomberg referencing sources, Chinese officials “believe a takeover by Musk would be the best solution” if the company’s Supreme Court appeal is rejected.
However, the publication also noted that “there is no indication that the CEO of Tesla and SpaceX is interested in acquiring the application.”
Musk is also the owner of the social network X (formerly Twitter), which he acquired for $44 billion in 2022.
Bloomberg reports suggest Musk could be a potential suitor for TikTok’s US operations due to his close business ties with China.
The Chinese government owns 1% of the shares – the so-called “golden share – at TikTok’s parent company, ByteDance.
Musk is also a close ally of President-elect Donald Trump, who will be inaugurated on January 20 (the day after the sale or ban legislation potentially takes effect).
Trump, who supported banning TikTok during his previous presidency, most recently opposed the closure of TikTok in the USA.
In December, his legal team requested the Supreme Court to extend the deadline beyond January 19 to provide a potential “policy solution” to the upcoming TikTok ban. The Justice Department reportedly rejected the claim in a Jan. 3 statement, according to NBC.
The Protecting Americans from Apps Controlled by Foreign Adversaries Act, which takes effect on Jan. 19, targets apps owned by companies in countries the U.S. considers security threats.
TikTok is a major concern under the law, with U.S. lawmakers warning that the platform could share sensitive user data with the Chinese government or influence the content Americans consume.
TikTok denies these claims. If the law is upheld by the Supreme Court and ByteDance does not sell TikTok, US app stores will be required to remove the app and updates will no longer be allowed starting January 19th.
Last month, US lawmakers warned Google and Apple that they must prepare to remove TikTok from their app stores by January 19, 2025, if its China-headquartered parent ByteDance does not sell the platform by that date.
While existing users may use the app for a while, it may eventually become dysfunctional in the market.
Project Liberty Proposal
Last week, another US billionaire, Frank McCourt, through Project Liberty, formally made a proposal for TikTok to operate in the US with ambitions to relaunch the platform on “new American-made digital infrastructure.”
Project Freedom said on Thursday (Jan. 9) that it has “the financial capacity to complete the transaction,” including “expressions of interest from investors, including large private equity funds, family offices and high net worth individuals, for adequate equity capital.” It stated that it also has access to debt financing from “one of the largest banks in the world.” United States.
McCourt and Project Liberty also mentioned that they have “extensive support from leading legal and financial advisors with experience in executing complex, high-stakes transactions in accelerated timeframes.”
“We have put forward a proposal to ByteDance to implement Project Liberty’s vision for a reimagined TikTok built on an American-made technology stack that puts people first,” stated Frank McCourt, founder of the Freedom project.
“By supporting the platform, not relying on TikTok’s current algorithm, and avoiding a ban, millions of Americans will be able to continue using the platform. We look forward to working with ByteDance, President-elect Trump, and the new administration to complete this deal.”
