Elon Musk’s Stance on Tiktok Acquisition
Elon Musk stated that he has no intention of buying Tiktok, as the social media platform faces ongoing restrictions in the United States.
During a virtual conference hosted by BLISTER Group, part of the German media conglomerate Axel Springer Se, on January 28, Musk highlighted his preference for building companies from the ground up rather than acquiring existing ones.
“I did not bet on Tiktok,” the CEO of SpaceX and Tesla declared at the conference. “I have no plans for what I would do if I had Tiktok.
Musk further remarked: “I am not looking to buy Tiktok. I do not typically purchase entire companies; that is quite rare. I usually build companies from scratch.”
In 2022, Musk acquired Twitter for 44 billion dollars.
Political Context Surrounding Tiktok
Musk’s remarks came shortly after former US President Donald Trump had publicly suggested Musk as a potential buyer for the platform.
Negotiations for Tiktok’s ownership ramped up following events last month, when the app, which boasts 170 million American users, faced temporary restrictions after the US Law on Disk-Ili-Banes was enacted. Tiktok managed to restore access to American users after Trump extended the deadline for ByteDance to divest Tiktok’s US operations for 75 days.
Last weekend, Trump appointed Vice President JD Vance and National Security Adviser Michael Waltz to oversee negotiations regarding the potential sale of Tiktok to US-based organizations, as NBC News reported, citing “two people familiar with the matter.”
The former President proposed a possible 50/50 ownership division between American and Chinese interests. Last week, Trump signed an order establishing a US sovereign wealth fund, potentially aimed at acquiring Tiktok.
“I have the right to do this, and we could place it in a sovereign wealth fund, regardless of what we do, or if we partner with very wealthy individuals. There are many options, but we could showcase this as an example for the fund,” Trump told reporters in the Oval Office.
Challenges for Tiktok Moving Forward
The parent company of Tiktok, Bytedance, continues to face pressure to sell its US operations due to national security concerns. Both Apple and Google have removed Tiktok from their app stores in compliance with US law. In response, Tiktok has introduced alternative distribution methods, allowing Android users to download the app directly from their website.
The recent imposition of additional tariffs by Trump on Chinese imports further complicates Tiktok’s situation. This move might influence Bytedance’s willingness to negotiate, although some US officials, including Representative Raja Krishnamoorthi, have suggested that Bytedance may be more open to a sale now that other options are limited.
Other potential buyers of the platform include tech giants Oracle and Microsoft, as well as the AI startup Perplexity. Additionally, a consortium of American investors led by tech entrepreneur Jesse Tinsley has reportedly raised 20 billion dollars to bid for Tiktok’s US operations. This group includes Roblox CEO David Baszucki and Anchorage Digital CEO Nathan McCully.
Elon Musk denies interest in TikTok as app’s US future remains uncertain
