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

According to a Wall Street Journal report, unnamed Chinese officials are holding preliminary talks about allowing TikTok's U.S. division to be sold to Musk, who is viewed as a "trusted" buyer due to his existing business ties with China through Tesla's Shanghai factory.

The discussions come as TikTok faces a critical deadline this Sunday, when it must either sell its U.S. operations or effectively shut down, unless President Biden grants an extension or a court blocks the deadline. While ByteDance and TikTok have historically resisted selling, their legal challenges and public campaigns have failed to stop the ban law.

Key developments:

• The Supreme Court still needs to rule on the law's validity, with justices appearing to lean toward upholding it
• ByteDance has already received at least one formal bid
• Chinese government approval would be crucial for any deal, as Beijing owns a stake in ByteDance
• The Journal notes it's unclear if these discussions have reached top leadership

TikTok has officially dismissed the Musk sale rumors as "pure fiction." Shark Tank's 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, stating on X: "The regulators hate monopolies, and Trump's not letting go of this golden bargaining chip."

Despite the uncertainty surrounding its U.S. operations, TikTok continues to expand its promotional initiatives both domestically and internationally.

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