Summary
- Wedbush suggests Elon Musk could potentially buy TikTok, which is facing a ban in the US
- Sources close to the matter said China is considering Musk as a potential buyer to keep TikTok running in the US
- Wedbush analyst Dan Ives believes that Musk leading TikTok could make sense given his relationship with Trump and China
- TikTok could be sold for $40-50 billion and integrated into Musk’s X platform
- Purchasing TikTok may be the only way to avoid a ban in the US
Article
Tesla CEO Elon Musk is being considered as a potential buyer for the social media platform TikTok, which is facing a ban in the United States. Musk has previously purchased Twitter and changed it to X, leading to speculation that he could be an ideal buyer for TikTok. Sources close to the matter have stated that China is considering Musk as a potential buyer to keep TikTok running in the U.S.
Analyst Dan Ives from Wedbush published a note suggesting that Musk taking over TikTok could make sense due to his strong alliance with President Trump and his close relationship with Beijing. Trump’s desire to “save” TikTok could tie into his relationship with Musk, potentially leading to a political move to improve relations with China. Ives also discussed the potential pricing of TikTok and its integration into the X platform, which could significantly enhance its value.
Ives believes that if TikTok were to be sold, it could be without the algorithm and have a price tag in the range of $40 billion to $50 billion. This sale could boost the value of the X platform, with Musk likely seeking outside investments for the purchase. Alternatively, there could be a joint partnership with Musk playing a major role, potentially avoiding a ban of TikTok in the U.S. Overall, purchasing TikTok may be the only way to prevent a ban and keep the platform operational in the country.
The potential acquisition of TikTok by Musk or another party would require extensive negotiations. Integrating TikTok into the X app could have a significant impact on its valuation. Ives sees the sale of TikTok for billions of dollars and believes that Musk could play a crucial role in the deal. Ultimately, buying TikTok could be a strategic move to save the platform from being banned in the U.S.
For those interested in Tesla accessories, the Teslarati Marketplace offers a variety of products. For questions and comments, email Joey at joey@teslarati.com or reach out on Twitter at @KlenderJoey. News tips can be sent to tips@teslarati.com. The speculation surrounding a potential acquisition of TikTok by Elon Musk highlights the complex relationship between technology, politics, and international business.
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