TikTok: a boon for Elon Musk, on track to buy American activities?

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While TikTok risks a ban in the United States from January 19, 2025a buyout by XElon Musk’s platform (formerly Twitter), was mentioned by Bloomberg. Although TikTok denied this information as “pure fiction”, this option appears to be a plausible solution to meet American national security requirements, which require ByteDance to divest its activities on American territory.

There House of Representatives recently passed a bill that could result in a ban on the app. Lawmakers fear that TikTok, owned by Chinese giant ByteDance, will share user data with Beijing and, above all, manipulate the content of its platform.



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TikTok: an identity with multiple passports with Chinese power in the background

Officially, TikTok does not operate in mainland China. Founded in California in 2015, the app is separate from Douyinits version available in China. TikTok is owned by TikTok LLCbased in Los Angeles and Singapore, itself controlled by TikTok Ltdregistered in the Cayman Islands and based in Shanghai. At the top of the pyramid, Beijing-based ByteDance controls this structure through a complex chain of companies.

Founded in 2012 by Zhang YimingByteDance has established itself thanks to products like TikTok and Douyin. The company is based on a structure composed of multiple investors, including Sequoia Capital, General AtlanticAnd SoftBankbut Zhang Yiming remains the majority shareholder. In 2021, the Cyberspace Administration of China (CAC)China’s internet regulatory agency, has taken a stake in ByteDance and has a seat on its board of directors. Another way for the Chinese government to strengthen the perception of its direct influence on society.

A takeover by Elon Musk via X: the most plausible scenario?

The hypothesis of a takeover by X has been circulating for several months and was brought to light by Bloomberg. Such a takeover would keep the data of American users under control while transforming X into a major player in social networks. For the moment, neither Elon Musk nor ByteDance have reacted to this information.

For Elon Musk, a real godsend

A takeover by X would offer Elon Musk the opportunity to integrate TikTok into his strategy of transforming X into a multifunctional platform. With more than 170 million monthly active users in the United States, TikTok could allow X to compete directly with Instagram and YouTube, while expanding its audience and advertising revenue. It remains to be seen what game will be played between Donald Trump and the Chinese government.

Other credible alternatives

In the event of a forced sale, several players could position themselves:

  • Microsoft : Already a candidate in 2020, Microsoft could integrate TikTok into its ecosystem (LinkedIn, Azure).
  • Oracle : With its expertise in data management, Oracle could address national security concerns.
  • American investor consortiums : Funds like Blackstone Or KKR could structure a collective acquisition to keep TikTok under American control

Valuation remains at the heart of discussions

Beyond the political aspects, the complexity of TikTok’s structure, combined with questions of transfer of algorithms and technologies, the price of such an acquisition remains a question not so simple to resolve.

The TikTok brand is estimated to more than 80 billion dollarsand the valuation of ByteDance would exceed 300 billion dollars in January 2025, according to Reuters. These amounts limit the circle of potential buyers and raise questions about the viability of such an operation.