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China discusses sale of TikTok U.S. to Musk as one possible option

Chinese officials are evaluating a potential option that involves Elon Musk acquiring the U.S. operations of TikTok if the company fails to fend off a controversial ban on the short-video app, according to people familiar with the matter.

Beijing officials strongly prefer that TikTok remains under the ownership of parent ByteDance Ltd., the people say, and the company is contesting the impending ban with an appeal to the U.S. Supreme Court. But the justices signaled during arguments on Jan. 10 that they are likely to uphold the law.

Senior Chinese officials had already begun to debate contingency plans for TikTok as part of an expansive discussion on how to work with Donald Trump’s administration, one of which involves Musk, said the people, asking not to be identified revealing confidential discussions.

A potential high-profile deal with one of Trump’s closest allies holds some appeal for the Chinese government, which is expected to have some say over whether TikTok is ultimately sold, said the people. Musk spent more than $250 million supporting Trump’s reelection, and has been tapped for a prominent role in improving government efficiency after the Republican takes office.

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