Elon Musk eyes TikTok as Supreme Court decision nears

Tech billionaire Elon Musk could add TikTok to his growing digital empire, which would dramatically reshape the social media landscape and give his AI ambitions a massive data boost.

Key details:

• Chinese officials are reportedly considering X (formerly Twitter) as a potential buyer for TikTok’s U.S. operations.
• The deal would add 170 million U.S. users to Musk’s social media portfolio.
• TikTok’s data could supercharge Musk’s xAI company.

But. TikTok calls the Bloomberg report “pure fiction.”

State of play. With the Supreme Court signaling support for legislation that could force TikTok’s sale, Musk emerged as a surprise contender, despite previously opposing a ban.

The dynamics:

• Musk could leverage TikTok’s massive user base to revive X’s struggling ad business.
• TikTok’s vast data trove could provide critical training data for xAI.
• The deal might exclude TikTok’s prized algorithm.

Why we care. This potential acquisition could significantly impact your social media marketing strategies in three key ways:

1. Musk’s ownership could lead to major changes in TikTok’s advertising costs and content moderation policies, similar to what happened at X (Twitter) after his takeover.
2. The possible consolidation of TikTok and X could create both opportunities for cross-platform advertising and risks if advertisers need to pivot away from both platforms.
3. If the deal excludes TikTok’s algorithm, it could affect ad performance and targeting capabilities that many brands currently rely on.

Reality check. Musk publicly opposed a TikTok ban in April, stating it would be “contrary to freedom of speech and expression” — even while acknowledging it could benefit X.

Musk buying TikTok could also lead to an increase in cost, which was seen when Musk bought Twitter and advertisers started boycotting the platform.

The competition: Other potential buyers include:

• Microsoft, which previously attempted to acquire TikTok in 2020.
• Oracle, which hosts TikTok’s U.S. data.
• A consortium led by Frank McCourt and Kevin O’Leary.

Between the lines. A Musk-owned TikTok would face intense scrutiny given his controversial content moderation approach at X and his AI ambitions.

What’s next. The Supreme Court’s decision could trigger a bidding war ahead of the Jan. 19 deadline, with Musk potentially positioned as a preferred buyer for Chinese officials.

Bottom line. If Musk successfully acquires TikTok, he will control two of the most influential social media platforms in the U.S., significantly expanding his influence over digital discourse and AI development.