Meta, Snap shares lower as China mulls sale of TikTok US to Musk

Investing.com -- Shares of Meta Platforms (NASDAQ:META ) and Snap Inc (NYSE:NYSE:SNAP ) both edged lower in today's pre-market session, with META down 0.7% and SNAP falling 2.2%. The downward movement comes amid news that Chinese officials are considering a plan that could see Elon Musk acquire TikTok's US operations if the app's parent company, ByteDance Ltd., cannot avert a looming ban in the United States.

The companies' stocks, previously mentioned as potential suitors for TikTok's US business, reacted to reports that Beijing would rather have TikTok remain under ByteDance's control. The US Supreme Court heard arguments on January 10 indicating a potential upholding of the ban, prompting Chinese officials to weigh alternative strategies. Among these is the possibility of involving Musk, although the discussions remain private and speculative at this stage.

The news has cast a shadow over META and SNAP, as investors had speculated on the potential benefits that acquiring TikTok's US operations could bring to either company. With Musk now emerging as a potential acquirer, the future of TikTok in the US remains uncertain, impacting the market sentiment around these social media giants.

The strategic implications of TikTok's ownership could have significant repercussions for the social media landscape, where META and SNAP are key players. The outcome of ByteDance's appeal and the potential involvement of Musk are closely watched by investors, as they could reshape competitive dynamics and user engagement across platforms.

For now, the markets reflect the uncertainty surrounding TikTok's situation, with META and SNAP experiencing modest declines. Investors will be keeping a close eye on developments, as the Supreme Court's decision and the ensuing corporate maneuvers will likely influence the future trajectory of these companies' stocks.

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Source: Investing.com