Tesla bull Wedbush weighed the potential of CEO Elon Musk shopping for social media platform TikTok, which is about to be banned in the USA in lower than per week.
Some are speculating that Musk could possibly be an excellent purchaser, as he has already bought one platform in Twitter, which he modified to X. Final night, a report from Bloomberg said that sources near the matter stated China was mulling Musk as a possible purchaser of the platform to maintain it operating within the U.S.
With the tales persisting and lots of how Musk might buy the platform, Wedbush’s Dan Ives printed a word on Tuesday morning driving residence the concept that the Tesla frontman being on the helm of TikTok might make sense:
“Given the robust and rising alliance between Trump and Musk this isn’t a complete shock route as behind the scenes the Trump White Home is options if the Supreme Court docket upholds the ban. As well as, Beijing/Xi Jinping has a powerful relationship with Musk so there can be added consolation on this deal/potential partnership to keep away from a TikTok ban in our view.”
Ives particulars the concept that President-elect Donald Trump’s need to “save” TikTok might immediately tie into his relationship with Musk, who might buy the platform. It may be a possible political transfer on Trump’s finish because it might convey relations with China to a wholesome degree as he takes workplace.
The analyst then goes on to speak concerning the potential pricing of the platform in addition to its potential to bolster power inside X, because it might combine TikTok as a function:
“We imagine within the situation that ByteDance offered the US operations of TikTok this may be with out the algorithm (ByteDance won’t ever promote this key DNA) at a price ticket doubtless within the $40 billion to $50 billion vary. This could considerably improve the worth of Twitter/X platform and sure Musk would take exterior investments for this potential golden asset pickup. It’s additionally potential that as an alternative of an outright sale this ends in a joint partnership with Musk enjoying a serious position and serving to keep away from a real ban of TikTok within the US.”
In what can be a transaction that would want loads of negotiations, Ives sees TikTok being offered for between $40 billion and $50 billion, and integrating it into the X app can be monumental for its valuation. All in all, a purchase order by Musk or anybody else could possibly be the one method TikTok works round a ban within the U.S.
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