Chinese officials are reportedly considering the sale of TikTok's U.S. operations to Elon Musk as the January 19th divestment deadline approaches.

The Wall Street Journal reports that unnamed Chinese government officials are holding preliminary discussions about selling TikTok's U.S. operations to Musk, who is seen as a "trusted" figure due to Tesla's presence in Shanghai and his positive relationship with Chinese leadership.

The timing is critical as TikTok faces a January 19th deadline to either sell its U.S. operations or effectively shut down, unless President Biden grants a 90-day extension or a court order blocks the sale requirement.

Key points about the potential sale:

• Chinese government approval is necessary for any deal, as Beijing owns a stake in ByteDance
• The discussions are preliminary and haven't reached top leadership yet
• TikTok has called the Musk sale rumor "pure fiction"
• The company has already received at least one formal bid from other parties

Business mogul Kevin O'Leary, who is part of The People's Bid for TikTok, believes Musk is unlikely to pursue the deal due to potential regulatory scrutiny and monopoly concerns.

The Supreme Court is expected to rule on the ban law's validity, with early indicators suggesting the justices may allow the measure to remain in place. Despite these developments, TikTok continues its promotional initiatives both in the U.S. and internationally while pursuing various legal and public opinion strategies to oppose the forced sale.

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