Tesla bull Wedbush weighed the potential of CEO Elon Musk shopping for social media platform TikTok, which is ready to be banned in the USA in lower than per week.
Some are speculating that Musk may very well be a really perfect 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 mentioned China was mulling Musk as a possible purchaser of the platform to maintain it operating within the U.S.
With the tales persisting and plenty of taking a look at how Musk may 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 may make sense:
“Given the sturdy and rising alliance between Trump and Musk this isn’t a complete shock route as behind the scenes the Trump White Home is taking a look at options if the Supreme Courtroom upholds the ban. As well as, Beijing/Xi Jinping has a powerful relationship with Musk so there could 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 want to “save” TikTok may instantly tie into his relationship with Musk, who may buy the platform. It may be a possible political transfer on Trump’s finish because it may convey relations with China to a wholesome stage 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 may combine TikTok as a function:
“We consider within the state of affairs that ByteDance offered the US operations of TikTok this could be with out the algorithm (ByteDance won’t ever promote this key DNA) at a price ticket possible within the $40 billion to $50 billion vary. This may considerably improve the worth of Twitter/X platform and sure Musk would take outdoors investments for this potential golden asset pickup. It’s additionally attainable that as an alternative of an outright sale this leads to a joint partnership with Musk taking part in a significant position and serving to keep away from a real ban of TikTok within the US.”
In what could 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 could be monumental for its valuation. All in all, a purchase order by Musk or anybody else may very well be the one means TikTok works round a ban within the U.S.
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