Chinese officials are reportedly considering the sale of TikTok's U.S. operations to Elon Musk as the January 19th divestment deadline approaches. This development comes from a Wall Street Journal report highlighting preliminary discussions among unnamed Chinese government officials.

Unless President Biden grants a 90-day extension or a court order blocks the sale deadline, TikTok must either sell or effectively cease U.S. operations this Sunday. While ByteDance and TikTok have historically resisted selling, their legal challenges and public campaigns have failed to prevent the ban law.

The potential sale to Musk is particularly noteworthy given his established relationship with Chinese leadership and Tesla's manufacturing presence in Shanghai. However, any deal would require approval from Chinese officials, especially considering Beijing's ownership stake in ByteDance.

Key considerations:

• The Supreme Court has yet to rule on the ban law's validity, though justices appear inclined to maintain it
• TikTok has already received at least one formal bid
• A company representative dismissed the Musk sale rumor as "pure fiction"

Kevin O'Leary, partner of The People's Bid for TikTok, suggests regulatory scrutiny might deter Musk from pursuing the acquisition: "The regulators hate monopolies, and Trump's not letting go of this golden bargaining chip."

Despite the uncertainty surrounding its U.S. future, TikTok continues to advance promotional initiatives both domestically and internationally while exploring various options to address the impending deadline.

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