Rumours has been spreading that the Chinese officials are discussing a possible option that involves selling at least a portion of the US version of TikTok to Musk's X, after reports from Bloomberg and the Wall Street Journal.

The discussions, if they were true, would mark a stark reversal in China's stance on a Tiktok sale just days before the ban in the United States would come into play. China's commerce ministry previously stated that it would "firmly oppose" a forced sale of TikTok, despite the many billionaires who have also voiced their interest in buying over the company.

Why won't China and Bytedance Sell it to anyone other than Elon Musk?

While the Chinese government strongly prefers TikTok to remain under the ownership of its parent company, ByteDance Ltd., it is preparing contingency plans as the US Supreme Court appears poised to uphold legislation that could force TikTok to either sell or shut down its US operations.

And when push comes to shove, it seems that the only person that china and Bytedance would be willing to sell TikTok to is Elon Musk. But why is it so?

From the perspective of China, Elon Musk would be the perfect candidate because Musk is seen by China as an ally, especially since Musk also gained prominence and established a working relationship with the Chinese government through Tesla's operations in the country.

China is essentially putting this acquisition as a leverage to obtain crucial intel from the Trump Administration from Musk, which would be crucial for China in a time when China will be looking for leverage in tariff negotiations.

What is in it for Musk?

Musk, on the other hand, could cement his position as a defender of free speech, if he successfully buys over TikTok.

This would give him even greater control over an even larger and more influential social media platform than X, which he has already successfully used to boost his own interest, including aiding the reelection of Donald Trump.

President-elect Trump, who takes office Jan 20, has also sought to delay the TikTok ban so he can work on the negotiations. He has said he wants to "save" the app and there's been speculation he could take last-minute action to sidestep the ban.

If TikTok is sold, the transaction could be valued between $40 billion and $50 billion, presenting significant financial and regulatory challenges.

Is the acquisition really happening?

But the acquisition might not be that straightforward as Beijing’s approval would be necessary due to Chinese export rules that restrict the sale of software algorithms, including TikTok’s recommendation engine. Furthermore, the Chinese government also holds a “golden share” in a ByteDance affiliate, granting it influence over key decisions.

Further complicating matters, ByteDance has also made its stance very clear that it would prefer to fight the legislation rather than relinquish control of Tiktok's U.S. operations. After the reports from Bloomberg and Reuters were published, TikTok has also come forward to denying the rumours of a possible sale of TikTok, calling the report "pure fiction."

TikTok spokesperson Michael Hughes said in a statement

"We can't be expected to comment on pure fiction."

Future Uncertainty

The fate of TikTok remains uncertain as Chinese officials continue to fight the legal battle with the US. Analysts suggest that if ByteDance ultimately decides not to sell TikTok, they could consider alternative strategies such as rebranding TikTok or shifting its US user base to a similar app, though the effectiveness of such measures is unclear.

With time running out before the January 19 ban, TikTok’s leaders face high-stakes decisions that could redefine the app’s future in the US market.