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Elon Musk Eyeing TikTok Acquisition: What It Means for Social Media

Published January 14, 2025 by Kenneth John
TNJ Business Briefs
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Elon Musk, who is the owner of Tesla, SpaceX, and X (previously Twitter), might purchase TikTok’s American presence. It has been discussed rather recently Quite possibly, there are numerous articles written on this idea.

TikTok, which is used for short videos, was developed by the Chinese company ByteDance.The government of the United States fears that TikTok could use, or be forced to surrender, its users’ data to the Chinese administration. This has led some leaders in the United States to demand the blocking of TikTok or compel ByteDance to divest its operations in the United States.

TikTok can be shut down in America if ByteDance does not sell TikTok’s US operation. It is concerning this that Elon Musk’s name comes into play.

Why TikTok Might Be Banned in the U.S.

TikTok to me is very popular in America. It is used daily by millions of people to share videos, learn new content, and entertain. However, leaders in the United States are concerned because the app takes a lot of data.

Selected members of Congress believe that this information could be shared with China’s authorities. They fear that TikTok might be used for espionage, or for introducing fake news.

To rectify this, the U.S. government has enacted a law. This law requires ByteDance to divest all TikTok operations in the United States and have them purchased by an American company by the close of January 19. Should this not occur, then TikTok may be removed.”

TikTok has also petitioned the Supreme Court to halt this ban. However, so far, the court is on the same page with the government. This has placed TikTok in a difficult position.

Why Would Elon Musk Want to Buy TikTok?

If Musk buys TikTok, it willalso be beneficial for his own companies. He owns X a social media platform. But X has lost many advertisers since Musk acquired it.

There exist 170 million active users of TikTok in the United States. This large audience could bring more advertisers and help Musk to make some money. The rise of TikTok could also help Musk’s social media platform.

Another thing that concerns Musk very much is technology and artificial intelligence. TikTok gathers significant information from its consumers.. This data couldhelp Musk sharpen his AI endeavors, such as Grok–his chatbot. If Musk became the owner of TikTok, he will be able to receive this significant data.

What Are the Issues of This Deal?

Musk cannot buy TikTok if he wants to do it; it will not be a walk in the park. Of course, there are numerous issues which he would be encountering.

1. Obtaining Permission from Government

This kind of sale could happen only if both the U.S. and Chinese governments agreed to it. This is not simple.
China has very particular legal requirements when it comes to exporting technology.
TikTok business model which assists in determining what videos people watch is
shielded under Chinese laws. This suggests ByteDance may not be able to sell it.
On the other hand, the U.S. government
may not trust Musk if they believe he is getting
too cosy with the Chinese. This could actually be a problem for him to gain the approval.

2. Merging TikTok With X

If Musk buys TikTok, most likely, he will seek to integrate it with X. Could, in this case,
spark the formation of another type of social media platform.
But to combine two large platforms is a challenging task. For Musk, he has to ensure
that the users of TikTok are satisfied. He would also have to guard their information and
have to make sure the platform remains secure.

3. Financial Costs

It would cost billions of dollars to acquire TikTok. Musk himself is already investing a lot in other enterprises such as Tesla and SpaceX. Including TikTok to the list could stretch his resources. Sometimes it negatively affects Musk and his other businesses.

What Could Happen If Musk Buys TikTok?

A New Kind of Social Media

If Musk owns TikTok, the now popular social media will become a very special one. He
could tweak TikTok’s short videos with the other features of X. This could build a
radically dissimilar platform from social media platforms such as Facebook or Instagram
or from YouTube.
Indeed, such a platform could have millions of users from around the world. It could also
make the advertisers feel the

need to spend much more money.

Shifts in the Ties Between the United States and China

This deal can change the dynamics of the partnership between the United States of
America and China. But if Musk does help address the TikTok problem, it might prove that businesses can have a significant presence in politics.
But it could also result in people getting concerned over external interference. Those in
the opposition might then ask whether such a deal is positive for the United States.

The Future of TikTok Users

Adults read news on the app, students study, and numerous employees find their work
on TikTok. Should Musk buy TikTok they would keep on using the app. Any changes
that Musk brings to the scene, have to ensure that these users are happy. If they are not,
they might go elsewhere, but for joining other platforms, they need to go through a
tedious process.

Conclusion

It may also make sense for Elon Musk to buy TikTok. It could help TikTok avoid being banned in
the U.S. It could also assist Musk expand the re
ach of his social media company, X. However,
the deal has a lot of drawbacks. For Musk, the first challenge would be to get the approval of
two governments, the second is to tackle technical aspects and the third one is money. Even if this deal never occurs it asserts how large and crucial social media has become. It also emphasizes how a business can struggle to find a balance between business, politics and technology. The politics of this shared resource will be felt around the world when January 19
comes to an end.

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Kenneth John

Kenneth is a finance journalist at TNj.com, specializing in market trends, economic analysis, and investment strategies, providing insightful updates and expert perspectives on global financial news.

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