Elon Musk Dismisses Interest in Acquiring TikTok

Elon Musk has denied any plans to purchase TikTok, dismissing speculation that he might bid for the popular video-sharing platform. Speaking at the WELT Economic Summit on January 28, the billionaire entrepreneur made it clear that acquiring TikTok is not on his agenda.

“I’ve not put in a bid for TikTok, and I don’t have any plans for what I would do if I had TikTok,” Musk said in a video released by The WELT Group, a German media company.

TikTok’s Future in the U.S.

The Chinese-owned app, which boasts around 170 million American users, was set to face a ban on January 20 over national security concerns. However, former U.S. President Donald Trump granted its parent company, ByteDance, a 75-day extension to explore alternatives, including selling to a non-Chinese buyer.

Despite growing pressure, ByteDance has stated it has no intention to sell. However, multiple high-profile investors, including YouTube star MrBeast (Jimmy Donaldson), billionaire investor Kevin O’Leary, and former Los Angeles Dodgers owner Frank McCourt, have expressed interest in acquiring the platform.

Musk’s Stance on Acquisitions

Given his history of high-profile business moves, including his $44 billion acquisition of Twitter (now X) in 2022, Musk was widely speculated to be a potential TikTok buyer. However, he dismissed the idea, saying he typically does not acquire companies unless there is a strategic or ideological reason.

“I don’t acquire things just for economic reasons. It’s not clear to me what the purpose of acquiring TikTok would be apart from economics,” Musk stated. He explained that his decision to buy Twitter was to protect free speech, but he is unsure if a similar justification applies to TikTok.

TikTok’s Algorithm: The Key to Its Value

Analysts estimate TikTok’s U.S. assets – excluding its proprietary algorithm – could be worth $40 billion to $50 billion. However, much of TikTok’s success lies in its algorithm, which determines user engagement and content recommendations.

Musk acknowledged that if he were to ever consider an acquisition, his first priority would be to assess TikTok’s algorithm to determine “how harmful or useful” it is.

For now, however, the world’s richest man has made it clear – TikTok is not in his sights.