Elon's Trump Friendship could help him buy TikTok
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Hey, everybody. Welcome back to the Elon Musk podcast. This is a show where we discuss the critical crossroads that shape SpaceX, Tesla, X, The Boring Company, and Neuralink. I'm your host, Will Walden. Is TikTok about to be sold to Elon Musk? And could such a deal help bridge tensions between China and the United States?

How does Musk's deep political and business connection factor into this possible transaction? There's just a few of the questions swirling around the future of TikTok's U.S. operations as the short video platform fights to avoid a ban in the United States.

Now, Chinese officials are weighing a scenario in which Elon Musk could acquire TikTok's U.S. business if ByteDance, the app's Chinese parent company, fails to overturn the impending ban. ByteDance has appealed the ban to the United States Supreme Court, but during arguments on January 10th, the justices appeared inclined to uphold the legislation.

This has left the fate of TikTok hanging in the balance as Chinese authorities debate their next moves. Now, although Beijing's preferred outcome is for TikTok to remain under ByteDance's ownership, contingency plans are being explored in case the U.S. government forces a sale. According to sources familiar with the matter, one possibility under discussion involves Musk's social media company X taking over TikTok's U.S. operations.

Now Musk could integrate TikTok into his existing ventures, leveraging its massive user base of over 170 million Americans to attract advertisers and boost his other businesses, including his AI company, XAI. Now the potential deal has reportedly caught the attention of Chinese officials, given Musk's prior dealings with the Chinese government through Tesla, which has a major factory in Shanghai.

Now, the stakes for ByteDance are enormous. TikTok is valued at an estimated $40 to $50 billion, according to Bloomberg Intelligence. And this valuation reflects the platform's dominance in the United States, but it also highlights the complexity of any potential sale.

ByteDance and their legal team have been vocal about the difficulty of separating TikTok's U.S. operations from its global structure. And during arguments before the Supreme Court, TikTok's lawyers described the process as extraordinarily difficult.

Citing shared software, shared algorithms, and shared operational infrastructure, this span multiple countries. Now adding to the complexity, the Chinese government has a golden share in a ByteDance subsidiary, which grants Beijing influence over certain strategic decisions.

And while ByteDance maintains that this golden share applies only to its China-based operations, Beijing's export rules restrict the sale of advanced technologies, including TikTok's powerful recommendation algorithm.

Now, this means any deal involving TikTok would require Beijing's approval, granting the Chinese government significant leverage. President-elect Donald Trump, who will take office on January 20th, has expressed interest in resolving the TikTok issue. Even as the ban is scheduled to take effect the day before, Trump has suggested delaying the ban to allow more time for negotiations, calling it an opportunity to save the app.

And the incoming administration could potentially use the TikTok talks as a bargaining chip in broader negotiations with China on tariffs, trade, and export controls, according to people familiar with discussions. Now for Musk, the prospect of acquiring TikTok could align with his business ambitions. And Musk's X platform has struggled to reclaim its footing after his $44 billion acquisition of Twitter in 2022, which left the company saddled with debt.

Adding TikTok's vast user base and advertising revenue could inject new life into Musk's social media ambitions, while also providing data that could enhance his artificial intelligence ventures. However, how Musk would finance another multi-billion dollar purchase remains unclear. He has yet to fully repay the loans from his Twitter deal, raising questions about his capacity to secure additional funding for such a high-profile acquisition.

Now, Musk has previously voiced opposition to banning TikTok in the United States. In a post on X in April, he wrote, In my opinion, TikTok should not be banned in the United States, even though such a ban may benefit the X platform. Doing so would be contrary to freedom of speech and expression. It is not what America stands for. Now, Musk's comments reflect a broader debate over whether banning TikTok violates the First Amendment, a key argument that ByteDance's lawyers have raised in court.

Now, despite Musk's public stance, though, any deal involving TikTok could reignite scrutiny of his political and business ties. Musk has been a prominent supporter of Donald Trump, reportedly spending more than $250 million on the president-elect's re-election campaign. He's also played an active role in Trump's transition team, attending meetings at Mar-a-Lago and cultivating close relationships with members of the incoming administration.

Critics argue that Musk's political alignment with Trump could create conflicts of interest, particularly if government contracts or regulations affecting his companies come into play.

Now, Democrats and watchdog groups have already raised concerns about Musk potentially leveraging his relationship with Trump to influence politics that benefit his businesses, including Tesla and also SpaceX. Now, Musk's companies hold billions of dollars in government contracts. Their fears that the incoming administration might expand subsidies or ease regulatory scrutiny of his ventures.

Musk has also faced investigations by the Securities and Exchange Commission, or the SEC, and labor regulators, and his high-profile status has often placed him at the center of controversy.

For ByteDance, selling TikTok's U.S. operations to Musk might not be the only option on the table, though. According to insiders, the company has also considered relocating its U.S. user base to a separate, rebranded app as a way to sidestep the ban. However, it's unclear whether such a strategy would satisfy U.S. regulators who have framed the issue as one of national security. The U.S. government has long expressed concerns that TikTok's ownership by a Chinese company would

poses risks related to data privacy and potential surveillance, allegations that ByteDance has denied.

Other suitors for TikTok have also emerged in recent years. Microsoft and Oracle both pursued acquisitions in 2020. And more recently, billionaire Frank McCourt and investor Kevin O'Leary have promoted an alternative plan called Project Liberty to buy the app. O'Leary claims to have discussed the proposal with Trump directly, though it remains to be seen whether such plans will gain traction.

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Restrictions apply. See terms at sportsbook.fanduel.com. Gambling problem? Call 1-800-GAMBLER. And while Beijing weighs its options, it's clear that Chinese government views the TikTok negotiations as part of a broader geopolitical chessboard. Chinese officials have previously condemned U.S. efforts to ban TikTok, labeling them as economic bullying.

and accusing Washington as attempting to plunder a successful Chinese business. Beijing's interest in Musk as a potential buyer underscores the strategic importance of maintaining influence over the app while navigating its contentious relationship with the United States.

and Musk's existing ties to China could play a critical role in any potential big deal. Tesla's Shanghai factory, which opened in 2019, has become the company's largest production base, helping Musk expand Tesla's market share in China while building goodwill with officials.

However, Musk has also spoken out against certain U.S. trade policies targeting China, such as tariffs on EVs, positioning himself as a complex figure in the evolving dynamic between the two nations. As the deadline approaches, though, time is running out for ByteDance. Whether through legal appeals and negotiated sale or other strategies, the outcome will have significant ramifications for ByteDance, Musk, and

X, and all of society that uses these apps. For now, the uncertainty lingers and all eyes remain on these key players as this high stakes drama unfolds right in front of us on this podcast. If you want to continue this conversation, please go to our Discord, sign up. It's free. It's easy. We can continue talking over there and the link is in the show notes or description.

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