Chinese tech giant ByteDance is standing firm against pressure to sell TikTok following new US legislation that threatens to ban the popular video platform unless it is divested.
US lawmakers imposed a nine-month deadline for ByteDance to sell TikTok due to national security concerns, alleging potential espionage and propaganda risks associated with Chinese ownership.
Despite speculation that ByteDance might explore selling TikTok without its proprietary recommendation algorithm, the company firmly denied any plans for a sale.
“Foreign media reports about ByteDance exploring the sale of TikTok are untrue,” ByteDance stated on its Chinese-language platform, Toutiao. “ByteDance does not have any plans to sell TikTok.”
TikTok has long been a subject of political scrutiny, particularly during the Trump administration’s attempts to ban it. The platform has consistently refuted allegations of ties to the Chinese government and assured users that their data, especially in the US, is not shared with Beijing.
TikTok’s efforts to alleviate concerns include Project Texas, a $1.5 billion initiative to store US user data within the country. However, critics argue that separating the recommendation algorithm from ByteDance is also crucial for security reasons.
CEO Shou Zi Chew has indicated that ByteDance will challenge the new law in court. However, some experts caution that national security interests may take precedence over free speech protections.
The potential sale of TikTok presents significant challenges, including concerns over competition and the app’s valuable recommendation algorithm. US tech giants like Meta and Google may face regulatory obstacles in acquiring TikTok, while any sale involving the algorithm would require approval from Beijing.
Despite TikTok’s global popularity, it represents only a fraction of ByteDance’s overall revenue. Investors view TikTok’s success as part of ByteDance’s broader growth story, with its international backers holding stakes worth billions.
“TikTok US is a very small part of the overall business,” noted ByteDance investor Mitchell Green. “If it was kicked out of the US, we would not sell.”
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