Chinese officials are reportedly considering the sale of TikTok's U.S. operations to Elon Musk as the January 19th divestment deadline approaches, according to multiple reports including The Wall Street Journal.

Without a 90-day extension from President Biden or a blocking court order, TikTok must either sell or effectively cease U.S. operations this Sunday. While ByteDance and TikTok have consistently opposed selling, their various resistance efforts have failed to prevent the ban law.

The Supreme Court's pending decision on the law's constitutionality appears to favor keeping the measure in place, with a ruling expected soon. Meanwhile, Chinese government officials are reportedly discussing selling TikTok's U.S. operations to Musk, whom they consider "trusted." This consideration is particularly significant as Beijing holds ownership stake in ByteDance.

Key points about the potential sale:

• The Wall Street Journal reports preliminary talks among Chinese officials about a potential Musk deal
• Tesla's Shanghai factory and Musk's positive relationship with Chinese leadership make him an attractive buyer
• It's unclear if top Chinese leadership has been presented with the Musk proposal
• TikTok representatives have dismissed the rumor as "pure fiction"

Kevin O'Leary, partner of The People's Bid for TikTok, believes Musk is unlikely to pursue the deal due to potential regulatory scrutiny, stating, "The regulators hate monopolies, and Trump's not letting go of this golden bargaining chip."

Despite the ongoing uncertainty about its U.S. future, TikTok continues to maintain its promotional initiatives both domestically and internationally while awaiting final resolution on the forced divestment situation.

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