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 per week.
Some are speculating that Musk could possibly be a perfect 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 operating within the U.S.
With the tales persisting and lots of taking a look at how Musk may buy the platform, Wedbush’s Dan Ives revealed a word on Tuesday morning driving dwelling 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 alternate options if the Supreme Courtroom 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 may straight 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 carry relations with China to a wholesome stage as he takes workplace.
The analyst then goes on to speak in regards to 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 imagine within the state of affairs that ByteDance bought the US operations of TikTok this might 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 certain 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 enjoying a significant function and serving to keep away from a real ban of TikTok within the US.”
In what can 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 can be monumental for its valuation. All in all, a purchase order by Musk or anybody else could possibly be the one approach TikTok works round a ban within the U.S.
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