TikTok responds to rumors China wants to ask Musk to buy platform: 'pure fiction'

The Protecting Americans from Foreign Adversary Controlled Applications Act gave TikTok the option of divesting from its Chinese parent company or be removed from U.S.-based app stores and hosting services.

As rumors circulated Monday that China was looking to have the owner of X purchase TikTok, a representative for the latter said it was "pure fiction."

Bloomberg reported on Monday that Chinese officials were looking at an option involving Musk acquiring TikTok’s US operations ahead of a ban of the platform in the US, "according to people familiar with the matter."

The publication wrote that officials in Beijing prefer TikTok's parent company, ByteDance, to continue ownership of TikTok as it contests an impending ban through an appeal to the U.S. Supreme Court.

On Friday, the Supreme Court heard oral arguments over the future of TikTok.

‘MAKE TIKTOK WONDERFUL AGAIN’: KEVIN O'LEARY EXPLAINS HIS PLAN TO SAVE THE SOCIAL MEDIA PLATFORM

A TikTok logo is displayed on a smartphone in this illustration.

WASHINGTON (Reuters) -A U.S. federal appeals court on Friday upheld a law requiring Chinese-based ByteDance to divest its popular short video app TikTok in the United States by early next year or face a ban. (Reuters/Dado Ruvic/File Photo / Reuters)

Lawyers for the Biden administration reiterated their argument on Friday that TikTok’s Chinese ownership poses a "grave" national security risk for American users.

At the conclusion of oral arguments, it remained unclear as to how the Supreme Court might proceed in the matter — though a ruling or order is expected before the Jan. 19 ban comes into force.

Bloomberg said under a scenario discussed by Chinese officials, X, which is run by Musk, would acquire and control TikTok US. In doing so, TikTok could be an asset when trying to attract advertisers as it has over 170 million users in the U.S. Also possibly benefiting in the deal would be Musk’s artificial intelligence company, xAI, as it could take in massive amounts of data generated by TikTok, the publication reported.

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Elon Musk

SpaceX and Tesla founder Elon Musk speaks during an America PAC town hall on Oct. 26, 2024 in Lancaster, Pa. Musk has donated more than $75 million to America PAC, which he co-founded with fellow Silicon Valley venture capitalists and tech businessme (Samuel Corum/Getty Images / Getty Images)

Those familiar with the discussions claim the deliberations are preliminary, and no decision has been made on how to proceed.

When asked about the discussions, TikTok told Fox Business, "We can’t be expected to comment on pure fiction."

TikTok is facing a potential ban due to the Protecting Americans from Foreign Adversary Controlled Applications Act, a law signed by President Biden that passed in Congress last April with bipartisan approval. By midnight on January 19, the app could be removed from U.S. based app stores unless it is divested from its parent company.

SUPREME COURT WEIGHS TIKTOK BAN FRIDAY; NATIONAL SECURITY, FREE SPEECH ARGUMENTS ARE CONSIDERED

Biden speaking

US President Joe Biden speaks during the National Association of Counties legislative conference in Washington, DC, US, on Monday, Feb. 12, 2024. Biden's reelection campaign has launched a TikTok account in a bid to reach younger voters, a move that (Chris Kleponis/CNP/Bloomberg via Getty Images / Getty Images)

TikTok has faced controversy over it being a China-based company and for allegedly being used as spyware software for the Chinese Communist Party. Lawmakers on both sides of the aisle have warned about the potential national security threat TikTok allegedly poses via U.S. phones.

This week, "Mr. Wonderful" Kevin O’Leary announced he is partnering up with Project Liberty founder Frank McCourt to purchase the platform's U.S. assets from its parent company, ByteDance, and "rebuild the platform in a way that prioritizes the privacy of its 170 million American users." 

If their bid to acquire the social media platform is successful, O'Leary explained how they would change the platform to better align with U.S. interests.

Besides giving users ownership of their data and stripping out the "Chinese spyware", the investor emphasized TikTok has the potential to grow from its current 170 million users to "past 200 million" by regaining user trust.

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The investor also said how he would look to get countries like India, Switzerland, France, Canada and Germany onto the platform after these changes were instituted.

"This thing will become the world's largest television network in a matter of two years," O'Leary said about TikTok's growth potential.

FOX Business’ Kira Mautone contributed to this report.

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