TikTok users may not be familiar with the dining habits of the King of Korea in the 1600s. This was long before the Samsung era when Korea was called the Chosun Empire.
The King of Korea was in constant fear of assassination. Poison was a common method. A courtier had to taste every meal that was served to the King.
If the courtier survived the meal, then it was fit for the King. If he died, then the meal was avoided.
The courtier was called the si-yak-gwan. The task was performed by a castrated staff member. His passions had been restricted to food.
The si-yak-gwan may have something to teach the richest man in the world. Elon Musk made an allegedly Nazi-style salute during the Donald Trump inauguration on Jan 20.
There are reports of Musk buying the US unit of TikTok. The short video app is facing a ban in the US.
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On the surface, Musk’s enthusiasm for TikTok makes sense. TikTok has a vice-like hold on the American youth. With 70 million users, it has more than double the user base of any other short video app. Over 95% of American teenagers use it. The user base is not restricted to pimple-faced kids. More than a third of American adults use it. Most of them use it for entertainment.
TikTok USA is much more than a dance app. Its revenues have risen by over 40% annually for the last five years. Its revenue was US$12 billion ($16.2 billion) in 2024. It could double in three years at the current growth rate.
However, Musk may be about to swallow poison. TikTok’s killer app does not have a sleek interface or a catchy name. The secret sauce is its algorithm, which is not for sale. The algorithm directs users who have searched for, say, holidays in Bali to performers showcasing that destination. The algorithm feeds the addiction.
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ByteDance will hold on to its main asset. It will guard it like it was the King of Korea. Musk would inherit an app that would look like TikTok. It won’t feel like TikTok. It would be like buying a Ferrari without the engine.
This is not the only difficulty that Musk would face. US regulators would require assurances that user data would be protected, and China would impose conditions on what Bytedance can sell. The most daunting regulator could be the EU, where data privacy laws are stricter than elsewhere. Musk would need to exhibit a level of tact that he may not have.
A TikTok deal could irritate Musk’s shareholders. Tesla investors have much to lose from it. Over 40% of Tesla’s revenue comes from China, and the company enjoys goodwill from customers.
Tesla’s success in China could be jeopardised. The Chinese government could view Musk as meddling in social media and data privacy. Tesla could face punitive tariffs, and it could force customers to use local competitors like BYD.
The new owner may ruin the app. After Musk’s takeover, Twitter (now known as X) faced a dwindling user base, and its ad revenue halved from US$4.5 billion to US$2.3 billion.
Musk should scroll elsewhere for the short video. Triller, an American creator platform, has just listed at a discount to TikTok’s valuation. Mike Tyson is a backer of Triller. Triller signed an exclusive arrangement to fight at Triller’s events.
The Nasdaq-listed Triller has 45 million users, which is less than half of TikTok’s user base. Its algorithm is not viewed with suspicion by the US. Its interface is said to be easier than TikTok’s.
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Triller, which uses generative AI to create content, allows creators to keep most of its royalties at a rate nine times the ratio paid by TikTok.
Buying apps is just one way to enjoy the short video explosion. Althea Lim founded Gushcloud in Singapore, an intermediary in the creator economy that uses AI to connect creators with advertisers. Gushcloud should be viewed as the DHL or FedEx of the content economy.
Musk’s interest in TikTok could be driven by his status as a courtier to the President. Every meal that is served may not be easily digested, as the si-yak-gwan found.
Nirgunan Tiruchelvam is head of consumer and internet at Aletheia Capital and author of Investing in the Covid Era
