Elon Musk, the CEO of SpaceX and Tesla TSLA, has publicly dismissed the idea of acquiring the widely-used short-video app, TikTok. On Jan. 19, the U.S. President, Donald Trump signed an executive order to postpone the enforcement of a ban on the Chinese short-video app.
What Happened: Musk’s comments were made in late January and released online by The WELT Group, a division of German media company Axel Springer SE, on Saturday. Musk joined a summit hosted by the group via video, where he stated, “I have not put in a bid for TikTok.”
These comments were made a week after U.S. President Donald Trump signaled openness to Musk purchasing the app, which is owned by the Chinese company ByteDance. However, Musk admitted he was unfamiliar with the app's format and stated he had no intentions of acquiring it. “I’m not eager to buy TikTok. I rarely acquire companies,” Musk remarked.
The Tesla Founder also clarified that he likes to build companies from scratch but acquiring Twitter, now called X, was an ‘important and productive step’ to preserve the freedom of speech in America and the world at large.
While the enforcement of the ban on the short-video app has been delayed, Apple AAPL and Google GOOGL GOOG have yet to restore TikTok to their app stores. However, TikTok announced on Friday that U.S. Android users can now download and access the app via package kits available on its website, bypassing the restrictions.
Trump has stated that he is in discussions with multiple parties regarding the potential purchase of TikTok and expects a decision on the app’s future later this month. The President ordered a ban on the short video app amid national security concerns. Currently, the app has approximately 170 million users in the U.S.
SEE ALSO: Trump Pushes For TikTok Deal, China Could Oblige If It Weren’t For Those Tariffs — Here’s What We Know
Why It Matters: The idea of Musk acquiring TikTok first emerged in mid-January, when Chinese officials considered Musk as a potential buyer for TikTok’s U.S. operations. This was due to Musk’s existing relationships in China through Tesla’s Shanghai factory and his close ties to President-elect Donald Trump.
Later in the month, Trump himself expressed openness to the idea of Musk or the Chairman of Oracle Corporation ORCL Larry Ellison acquiring TikTok. This marked a significant shift in the platform's uncertain future amid regulatory challenges.
A report by The Washington Post on Wednesday suggests a rather firm stance by China, wherein it may allow TikTok’s U.S. operations to shut down instead of approving a sale unless Washington offers broader trade and technology concessions.
READ MORE: Elon Musk’s SpaceX And T-Mobile Go Live With Starlink-Powered Satellite-To-Cell Service: Here’s How Much It Will Cost
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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