Elon Musk dismisses TikTok acquisition plans

Elon Musk has dismissed speculation that he is interested in acquiring TikTok, denying reports that Chinese officials had considered selling the app to him to avoid a US ban.

Speaking at the WELT Economic Summit in Germany on January 28, the Tesla and SpaceX chief said he has not placed a bid for TikTok and does not see a strong reason to do so.

“I don’t have any plans for what I would do if I had TikTok,” Musk said in a video published on Saturday. He suggested that if he were to consider acquiring the app, his first priority would be to assess whether its algorithm is beneficial or harmful to users.

Reports from Bloomberg and the Wall Street Journal in January suggested Chinese officials had informally discussed selling TikTok to Musk. According to Bloomberg, one idea floated included having his social media platform X take ownership of TikTok to comply with a potential US ban. However, TikTok denied these reports, with a spokesperson calling them “pure fiction.”

TikTok, which has about 170 million monthly users in the United States, has been at the centre of national security concerns for years. US lawmakers have raised fears that the app’s Chinese parent company, ByteDance, could be forced to share user data with the Chinese government.

A bill signed by former President Joe Biden last April gave ByteDance a deadline to divest from TikTok or face a ban in the US. That deadline was set to expire on 20 January, but former President Donald Trump extended it for 75 days, allowing TikTok more time to find a non-Chinese buyer. The new deadline falls in April.

ByteDance has repeatedly stated that it does not plan to sell TikTok, but several investors have publicly expressed interest.

Among them is “Shark Tank” investor Kevin O’Leary, who, alongside billionaire Frank McCourt, reportedly placed a $20 billion bid for the platform. YouTube’s most-followed creator, MrBeast—real name Jimmy Donaldson—has also hinted at joining an investment group exploring a potential purchase.

Musk, who acquired Twitter—now rebranded as X—for $44 billion in 2022, said he took over the platform to “preserve freedom of speech.” However, he does not believe that same reasoning applies to TikTok.

“I don’t acquire things just for economic reasons,” he said. “It’s not clear to me what the purpose of acquiring TikTok would be apart from economics.”

Musk also noted that if he were to assess the platform, his primary concern would be how its algorithm affects users.

TikTok’s US assets—excluding its proprietary algorithm—are estimated to be worth between $40 billion and $50 billion, according to Wedbush Securities analyst Dan Ives. Analysts believe that much of the app’s value lies in its algorithm, which determines content recommendations and engagement patterns.

As the new deadline approaches, discussions about TikTok’s fate continue. While some lawmakers push for a ban, others advocate for a sale to a US company to ensure continued operations.

Musk’s refusal to engage in a potential bid leaves the field open for other investors. The future of TikTok in the US remains uncertain as negotiations continue.