Elon Musk has dismissed any interest in acquiring TikTok, clarifying during a virtual session at the WELT Economic Summit that he has neither submitted a bid nor formulated plans for the platform. The Chinese-owned video-sharing app boasts around 170 million monthly users in the U.S. and faced a potential ban due to national security worries, although this was deferred by former President Trump.
While ByteDance, TikTok’s parent company, has stated it is not looking to sell, various investors, including influencer MrBeast and billionaire Kevin O’Leary, have shown interest. Musk’s previous acquisition of Twitter for approximately AUD $70 billion was motivated by concerns about freedom of speech, but he questioned whether similar reasoning applies to TikTok.
Musk mentioned that the essential value in TikTok may lie within its unique algorithm, which influences user engagement. Analysts estimate TikTok’s U.S. assets could range from AUD $70.1 billion to $79 billion, but the full value remains debatable without factoring in the algorithm. He emphasised his intention to understand TikTok’s algorithm’s impact before considering any potential acquisition, indicating his strategic approach towards such investments.