Tesla bull Wedbush weighed the potential of CEO Elon Musk shopping for social media platform TikTok, which is ready to be banned in the US in lower than every week.
Some are speculating that Musk might be a super purchaser, as he has already bought one platform in Twitter, which he modified to X. Final night, a report from Bloomberg acknowledged that sources near the matter mentioned China was mulling Musk as a possible purchaser of the platform to maintain it working within the U.S.
With the tales persisting and plenty of how Musk might buy the platform, Wedbush’s Dan Ives printed a notice on Tuesday morning driving house the concept the Tesla frontman being on the helm of TikTok might 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 options if the Supreme Court docket upholds the ban. As well as, Beijing/Xi Jinping has a robust 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 President-elect Donald Trump’s need to “save” TikTok might instantly tie into his relationship with Musk, who might buy the platform. It is also 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 state of affairs that ByteDance bought the US operations of TikTok this may be with out the algorithm (ByteDance won’t ever promote this key DNA) at a price ticket probably within the $40 billion to $50 billion vary. This is able to considerably improve the worth of Twitter/X platform and certain Musk would take outdoors investments for this potential golden asset pickup. It’s additionally potential that as a substitute of an outright sale this leads to 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 could be a transaction that would wish loads of negotiations, Ives sees TikTok being bought 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 might be the one means TikTok works round a ban within the U.S.
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