Chinese officials are reportedly considering selling TikTok's U.S. operations to Elon Musk as the January 19th divestment deadline approaches. The discussions emerge amid increasing pressure for ByteDance to either sell TikTok or cease U.S. operations.

According to the Wall Street Journal, unnamed Chinese government officials are discussing the possibility of selling TikTok's U.S. operations to Musk, who they consider a "trusted" buyer. This consideration is particularly significant as Beijing holds ownership stakes in ByteDance and must approve any potential sale.

Key points about the potential sale:

• The Supreme Court still needs to rule on the ban law's validity
• ByteDance has received at least one formal bid
• Tesla's Shanghai factory and Musk's positive relationship with Chinese leadership make him a potentially attractive buyer
• The proposal hasn't yet been presented to top Chinese leadership
• Musk hasn't publicly commented on the matter

TikTok's response to the rumors has been dismissive, with a company representative calling them "pure fiction." Meanwhile, Kevin O'Leary, partner of The People's Bid for TikTok, suggests regulatory scrutiny would likely deter Musk from pursuing the acquisition.

Impact factors to consider:

• Regulatory concerns about monopolies
• Political implications
• TikTok's ongoing opposition to forced divestment
• The platform's continued U.S. promotional initiatives

The situation remains fluid as the January 19th deadline approaches, with multiple scenarios still possible, including a potential 90-day extension from President Biden or a court order blocking the sale deadline.

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