Trump gives Musk go-ahead to buy TikTok

Technology / news

Banned and reprieved social media star TikTok could end up in Elon Musk's ownership, after Trump approval

22nd Jan 25, 3:21pm by Juha Saarinen

Newly inaugurated United States president Donald Trump has given the green light for Twitter-X owner Elon Musk to buy social media site TikTok.

Rumours that Musk might end up as TikTok's owner started some days ago, with reports China was fine with the billionaire acquiring TikTok's US operations.

How much TikTok would cost Musk depends on what he gets in the deal. With the TikTok algorithm, one analyst suggested US$100 billion to US$200 billion; without the algorithm, which China might not allow TikTok's owners to sell, the social network could go for US$40 billion to US$50 billion.

TikTok has felt the squeeze from US authorities for a few years now. In April last year, the US government passed a law giving TikTok's owners ByteDance 270 days to sell the social media site and app, or be banned.

The reason for the ban is purportedly national security, with TikTok being accused of avaricious user data collection practices, and its connections to China.

There's some confusion as to Trump's actions against TikTok. He issued an executive order towards the end of his first term as president, in August 2020, attempting to force the sale of TikTok for security reasons.

After that, the matter has bounced back and forth in US courts, but the Biden administration ban was upheld last week.

The day after, on Sunday New Zealand time, TikTok went dark in the US. A spokesperson for the outgoing Biden administration called the shutdown "a stunt" and said it was up to the incoming Trump government to enforce the ban.

However, Trump had changed his mind about TikTok, and the following day the social media app was back online. After inauguration, Trump signed another executive order giving TikTok 75 days to before the ban kicks in.

Whether or not the ban will come into effect and/or TikTok's US business will be sold in part or fully now is anyone's guess. Meanwhile, TikTok chief executive Shou Zi Chew attended Trump's inauguration.

TikTok has shot to popularity in the US, with 175 million users and is reported to bring in US$1 billion a month in revenue. It competes against Mark Zuckerberg's Meta, particularly the company's Instagram app.

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21 Comments

by blobbles | 22nd Jan 25, 3:27pm 1737512826

Surely once the app is banned in the US its worth $0 and easy to pick up for a bargain? Surely Musk sees that the longer he waits, the cheaper it will get?

Maybe now Trump has classified everyone is female via an executive order, Musk can now also buy out all the male toilets in the country too, a huge real estate coup.

by mfd | 22nd Jan 25, 3:59pm 1737514761

This grift seems to be pretty in the open - Trump talking about how he can destroy the value of the company if they don't sell to the guy who funded his reelection at a decent price.

Great investment for Musk, few hundred million of donations and his soul for a multi-billion discount on another social media app.

by Jean Valjean | 23rd Jan 25, 10:08am 1737580111

And with that additional very popular social media App, Musk would wield even more influence (power).

by interesting1234 | 23rd Jan 25, 12:49pm 1737589799

And income

by tothepoint | 22nd Jan 25, 3:31pm 1737513117

Let's see what happens as time passes .......

Tick tock, tick tock, tick tock .......

TTP

by Nifty1 | 22nd Jan 25, 5:00pm 1737518428

Apparently some are finding the Tik- Tok algorithm has changed since it went down and certain content is no longer showing - Protests, La Fires, Drones etc. Has a deal already been done? Servers updated? His billionaire mates are all ready to go...

by Thats All Folks | 22nd Jan 25, 3:48pm 1737514084

Hilarious seeing the woke morons migrate to Red Note and then getting a dose of communist reality.

by Baywatch | 22nd Jan 25, 3:59pm 1737514781

How's your nazi salute coming along ?

"It seems that Elon Musk made an awkward gesture in a moment of enthusiasm, not a Nazi salute," it posted on X.

Andrea Stroppa, a confidant of Musk who has connected him with far-right Italian PM Giorgia Meloni, was reported by Italian media to have posted the clip of Musk with the caption: "Roman Empire is back starting from Roman salute".

The Roman salute was widely used in Italy by Benito Mussolini's Fascist Party, before later being adopted by Adolf Hitler in Germany.

by mfd | 22nd Jan 25, 4:07pm 1737515236

Classic dog whistle politics - ambiguous enough to give the useful idiots something to excuse him, and a loud, clear message for others.

by ChrisOfNoFame | 22nd Jan 25, 8:45pm 1737531905

"How's your nazi salute coming along ?"

Good. I figure I might need to be convincing.

I did think the guillotines would be working for the other side. Now? I'm not so sure.

No matter. Like the good capitalist I am - My guillotine business IPO will sell to anyone. /sarc

by RickStrauss | 23rd Jan 25, 7:54am 1737572042

This comment does not look like the product of emotional and mental stability, FYI. Maybe take some time off the internet?

by General Comment | 22nd Jan 25, 3:59pm 1737514741

Well you could knock me down with a feather. Who ever could have foreseen such an outcome?

/sarcasm of the day entry.

If this goes through TikTok will be on borrowed time. Younger generations have no issue at all bailing from social media platforms at the drop of a hat. Myspace, anyone? Bebo, maybe? The unpalatable political aftertaste will just quicken the process.

by rastus1 | 23rd Jan 25, 9:39am 1737578392

Some have spent years and a lot of hard work to monterise their accounts to make a living from. They provide the content, just as a movie coy does. They then get the rug pulled. There are financial victims when this happens.

by interesting1234 | 23rd Jan 25, 12:52pm 1737589976

Financial victims of cancel culture towards the platforms they use? Their money comes from effectively harvesting others attention, and when said attention turns elsewhere you can;t say they're victims, they just chose a fickle profession which relies on consistency. Something the youth (their key audience) aren't spectacular at.

by kensinma69 | 22nd Jan 25, 4:12pm 1737515564

I have been wanting a reason to delete that time warp app! If Musk gets it then I'm a gonner... that'll hurt him ;)

by huttman | 22nd Jan 25, 4:32pm 1737516742

Donald Trump has given the green light for Twitter-X owner Elon Musk to buy social media site TikTok.

the whole saga of TikTok is just robbery with endorsement from the congressmen.

by Tui12 | 22nd Jan 25, 5:53pm 1737521583

Watch Trump and Musk absolutely dominate the scene. Ruthless businessmen.

by ChrisOfNoFame | 22nd Jan 25, 8:53pm 1737532436

Is that a good thing?

by huttman | 23rd Jan 25, 9:12am 1737576750

well right to property is the foundation of capitalism.

by the Joneses | 23rd Jan 25, 11:03am 1737583382

Yeah but exploiting public office for private gain used to be against the rules.

They are not there as capitalists, they are there as public servants.

Now the president of the USA has a variety of meme coins.

by Kate | 23rd Jan 25, 10:40am 1737582012

TikTok has shot to popularity in the US, with 175 million users and is reported to bring in US$1 billion a month in revenue.

And does it remunerate users for views and/or some other metric? Anyone know the details of that? Just curious about the other side (expenses) of the ledger.