China Discusses Sale of TikTok US to Musk as One Possible Option
Published On Jan 13, 2025, 7:07 PM
Chinese officials are considering a plan that could allow Elon Musk to acquire the U.S. operations of TikTok if current legal challenges lead to a ban. While the Chinese government prefers that TikTok remain under ByteDance, they are assessing options after a Supreme Court hearing suggested a potential upholding of a national security law. A sale to Musk’s X (formerly Twitter) could leverage TikTok’s extensive user base to enhance advertising revenue. However, negotiations are still in early stages, and there are uncertainties regarding regulatory approvals and the complexities involved in such a transaction, estimated to be valued between $40 billion and $50 billion.
Stock Forecasts
TSLA
Positive
Given the potential acquisition of TikTok's U.S. assets by Elon Musk could lead to increased user engagement and advertising revenue for X, there may be positive sentiment towards Musk's companies, particularly Tesla and X. If the acquisition is seen as likely, investor interest may rise.
X
Negative
If the acquisition does not materialize or faces significant regulatory hurdles, it could impact investor confidence in Musk’s ventures, including Tesla. Investors may want to remain cautious until there's more clarity on the deal's feasibility and its implications for Musk's companies.
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