Elon Musk and the purchase of TikTok: how much it would cost him to buy the social network and what obstacle he must overcome
The possible sale of TikTok in the United States generated an intense political and business debate, and one of the names that emerged as a potential buyer is Elon Musk. If the acquisition is completed, the magnate would have to face an estimated price between 40,000 and 50,000 million dollarsaccording to analyst Dan Ives of Wedbush Securities.
This figure is similar to the 44 billion that the CEO of tesla paid in 2022 for Twitternow known as xwhich, according to Forbessuggests that the purchase of the Chinese app could represent a new strategic bet in the world of social networks.
This valuation far exceeds the offer of 20 billion dollars recently carried out by the American consortium Project Libertyheaded by businessman Frank McCourt, former owner of Los Angeles Dodgers.
The interest in TikTok is due to its strong presence in the US market, where it is used by approximately a third of the populationaccording to a survey of Pew Research last June. In terms of revenue, the platform is in full expansion and is expected to generate 15.53 billion dollars in advertising revenue in the US during 2025a growth of 26% compared to the previous yearaccording to the firm Emarketer.
Despite reports suggesting that China is considering allowing the sale of TikTok to Musk to avoid a US ban, ByteDance has flatly denied that the platform is for saledescribing the rumors as “pure fiction.”
According to publications of Bloomberg and The Wall Street Journalthe Chinese government would be analyzing the possibility that ByteDance separate TikTok operations in the North American country and sell them to Musk. The reason behind this strategy would be to avoid a total ban on the application in this territory.
However, the biggest obstacle to an eventual sale is that the TikTok’s recommendation algorithm, considered its most valuable asset, would not be included in the transaction. This would limit the attractiveness of the purchase, since the algorithm is key to user growth and retention.
The future of TikTok in the country is in the hands of the government and the judiciary. If ByteDance does not sell its operations in the country by January 19, the app will be bannedaccording to the law approved by Congress.
However, the situation is not yet defined, since The Supreme Court is considering an appeal against the banwhich could delay or even cancel the measure. Besides, Donald Trump, who will take office on January 20, has criticized the idea of banning TikTokwhich opens the possibility of extending the sales period for 90 days.
The central argument in favor of the ban is lawmakers’ concerns about the Chinese government’s access to American users’ data. The pressure on ByteDance to sell TikTok grew due to these fears, although the company has repeatedly denied that Beijing has control over user data.
China’s possible interest in the tycoon acquiring TikTok is largely due to its strong ties with the Chinese government and its closeness to Donald Trump.
Musk has cultivated a strategic relationship with China through Teslayour electric vehicle company. 23% of Tesla’s revenue comes from the Chinese marketwhich represents 5.7 billion dollars in the last quarter. In addition, Tesla has a production plant in Shanghai, which reinforces its dependence on the Chinese market.
On the other hand, the businessman also maintains a close relationship with Trumpwho will assume the presidency again on January 20. According to analyst Dan Ives, this connection represents a key political advantage to winning the bid for TikTok.
