Olivia Asher is a reporter at the New Herald Tribune covering breaking news for the Digital Trends Desk. Before joining the newsroom in 2022, she covered criminal justice issues at the Orlando Plain Dealer.
Mountain View, CA - Tech billionaire Elon Musk is reportedly considering the acquisition of TikTok's U.S. operations, potentially as a "housewarming gift" for President-elect Donald Trump's second term. This development comes as the popular social media platform faces an imminent ban in the United States, set to take effect today, January 19, 2025.
According to sources familiar with the matter, Chinese officials are evaluating the option of selling TikTok's U.S. operations to Musk if the company fails to prevent the ban. While ByteDance, TikTok's parent company, prefers to retain ownership, contingency plans are being discussed in light of the Supreme Court's recent signals that it may uphold the ban.
Analysts estimate that the price tag for TikTok's U.S. operations could range between $40 billion to $50 billion, similar to what Musk paid for Twitter (now X) in 2022. This potential acquisition is being viewed as a "golden asset pickup" for Musk and his social media company X.
Musk's close relationship with President-elect Trump adds an intriguing dimension to this potential deal. Recently appointed to head the newly established Department of Government Efficiency (DOGE), Musk is considered a close ally of the incoming president. Trump, who has previously expressed fondness for TikTok, crediting it for his youth support in the 2024 election, may view this acquisition favorably. The president-elect has the power to extend the ban deadline by 90 days after his inauguration on January 20.
TikTok is scheduled to appear before the Supreme Court today in a last-ditch effort to avert the nationwide ban.
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