Tesla bull Wedbush weighed the potential of CEO Elon Musk shopping for social media platform TikTok, which is about to be banned in the US in lower than per week.
Some are speculating that Musk could possibly be a super 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 working within the U.S.
With the tales persisting and plenty of how Musk may buy the platform, Wedbush’s Dan Ives printed a notice on Tuesday morning driving dwelling the concept the Tesla frontman being on the helm of TikTok may 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 alternate 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 President-elect Donald Trump’s want to “save” TikTok may immediately 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 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 energy inside X, because it may combine TikTok as a function:
“We consider within the situation 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 is able to considerably improve the worth of Twitter/X platform and sure Musk would take exterior investments for this potential golden asset pickup. It’s additionally doable that as an alternative of an outright sale this ends in a joint partnership with Musk enjoying a serious 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 means TikTok works round a ban within the U.S.
Want equipment in your Tesla? Try the Teslarati Market:
Please e mail me with questions and feedback at [email protected]. I’d love to talk! You can even attain me on Twitter @KlenderJoey, or if in case you have information ideas, you possibly can e mail us at [email protected].
