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

Published 15/01/2025, 12:00 am
© Reuters.
META
-
SNAP
-

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.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.