Headline: Elon Musk Eyed as Potential TikTok Buyer as U.S. Ban Looms
Title: Considering Elon Musk as a Potential TikTok Buyer: What We Know So Far
Elon Musk, the influential tech entrepreneur and CEO of SpaceX and Tesla, has entered the fray as a potential buyer of TikTok. The popular social media app could face a ban in the U.S. on January 19 if not sold to an American corporation, according to Bloomberg.
Timeline
January 13, 2025: Reports suggest that Chinese government officials are contemplating selling TikTok's U.S. operations to Musk, should Supreme Court proceedings fail to halt the imminent ban, although these discussions are in the preliminary stages. byteDance, TikTok's parent company, dismissed Bloomberg's report as "pure fiction."
January 10, 2025: The U.S. Supreme Court assessed the constitutionality of the law mandating the sale of TikTok to a U.S. entity or face a ban, with the justices showing a tendency to support the legislation after expressing satisfaction with its focus on the controversial Chinese ownership of the app's parent company [The New York Times].
January 9, 2025: Billionaire Frank McCourt's organization, Project Liberty, proposed a suggestion to preserve TikTok in the U.S. while prioritizing Americans' privacy, but it's unclear if byteDance will consider this offer.
January 6, 2025: "Shark Tank" star and investor Kevin O'Leary, part of The People's Bid for TikTok, stated his intention to purchase the app and sought Donald Trump's assistance.
January 3, 2025: The U.S. Department of Justice challenged the potential ban or sale of TikTok, asserting that the app had not supplied sufficient evidence to halt the law's enactment and that President Trump had no valid argument for a postponement.
December 27, 2024: Trump filed an opposition to the potential ban, indicating his belief that the Supreme Court's intervention could facilitate a political resolution afterwards.
December 18, 2024: The Supreme Court agreed to review TikTok's challenge against the federal legislation, scheduling oral arguments for January 10 – a few days before the ban's scheduled activation.
December 16, 2024: TikTok requested an injunction from the Supreme Court, hoping to halt the ban until the upcoming ruling. TikTok CEO Shou Chew met with Trump at Mar-a-Lago to discuss their injunction request with the TikTok-friendly Trump administration, although their plea was ultimately unsuccessful.
December 6, 2024: U.S. Court of Appeals for the D.C. Circuit dismissed TikTok's petition to review the legislation against it, declaring that national security concerns outweighed TikTok's First Amendment rights.
May 14, 2024: Eight TikTok users initiated a lawsuit against the federal government, claiming that the ban infringed upon their First Amendment rights.
May 7, 2024: TikTok filed a lawsuit against the federal government, contesting the constitutionality of the ban while raising allegations of First Amendment rights violations.
April 24, 2024: President Joe Biden signed the bill dictating TikTok's sale or ban, with TikTok stating that it had invested billions in protecting U.S. data and safeguarding the platform from foreign influence.
April 23, 2024: The Senate passed the bill with a resounding 80-19 vote, designed to counteract potential foreign espionage and surveillance, and safeguard users' privacy.
April 20, 2024: The House voted 360-58 to approve legislation against TikTok, with the goal of addressing concerns related to privacy and national security.
When Could the TikTok Ban Take Effect?
The TikTok ban might become effective as early as January 19, provided ByteDance does not agree to sell TikTok or the Supreme Court overturns the federal legislation. The court is set to hear oral arguments next week.
Which U.S. Companies Could End Up Buying TikTok?
A range of companies – including Amazon, Oracle, Walmart, and Microsoft – have shown interest in purchasing TikTok. Project Liberty, spearheaded by Kevin O'Leary, has built a consortium ready to acquire TikTok, albeit with no intent to acquire the app's algorithm.
Billionaire Frank McCourt: Who Is He?
Worth an estimated $1.4 billion, McCourt is an investor, entrepreneur, and real estate magnate who previously owned the Los Angeles Dodgers. He has since invested $500 million in Project Liberty, fostering data privacy.
Billionaire TikTok Investor Jeff Yass: Who Is He?
Yass, a Republican megadonor and advisor to TikTok, is a major investor in the app and instrumental in shifting Trump's stance on banning TikTok. With an estimated net worth of $49.6 billion, Yass has financially supported conservative lawmakers and used his influence to thwart TikTok bans.
Could Donald Trump Reverse the TikTok Ban?
Although Trump's options may be limited, he could potentially influence the justice department to stop enforcing the ban if the Supreme Court deems it constitutional before his inauguration. However, revoking his order could have limited impact, since Apple, Google, and Oracle may still choose to discontinue the app due to financial penalties.
What Happens to American Data if the App Is Shut Down?
Should TikTok be banned, all U.S. user data could be transferred to China, potentially storing millions of American's personal information.
Big Number
Engineering a temporary reprieve for TikTok could help facilitate sales negotiations or find alternatives, as over 170 million Americans engage with the platform monthly.
- Elon Musk, in response to the potential TikTok ban, expressed interest in purchasing the app's U.S. operations, prompting discussions with Chinese government officials, according to reports.
- Kevin O'Leary, a "Shark Tank" star and investor, announced his intention to buy TikTok and sought assistance from former President Trump, as part of The People's Bid for TikTok.
- Billionaire Frank McCourt's organization, Project Liberty, proposed a solution to preserve TikTok in the U.S., prioritizing privacy concerns, although it's unclear if byteDance will consider this offer.
- Jeff Yass, a wealthy investor and advisor to TikTok, played a significant role in shifting Trump's stance on banning the app, leveraging his political influence and substantial financial support.
- The Supreme Court heard arguments regarding the constitutionality of the TikTok ban law, with justice's showing a tendency to support the legislation, potentially allowing the ban to proceed on January 19.
