Tesla bull Wedbush weighed the potential of CEO Elon Musk shopping for social media platform TikTok, which is about to be banned in america in lower than every week.
Some are speculating that Musk might 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 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 how Musk may buy the platform, Wedbush’s Dan Ives revealed a be aware 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 options if the Supreme Court docket upholds the ban. As well as, Beijing/Xi Jinping has a robust 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 want to “save” TikTok may instantly tie into his relationship with Musk, who may buy the platform. It is also a possible political transfer on Trump’s finish because it may deliver 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 energy inside X, because it may combine TikTok as a characteristic:
“We imagine within the state of affairs 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 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 an alternative of an outright sale this ends in 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 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 might be the one method TikTok works round a ban within the U.S.
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