Despite mounting pressure from the US government, ByteDance, the parent company of TikTok, asserted its stance against selling the popular video-sharing app.
The company denied any plans for divestment, despite a nine-month deadline imposed by US law due to national security concerns.
Recent reports from The Information suggested that ByteDance may explore selling TikTok without its recommendation algorithm, further complicating the situation.
However, TikTok firmly denied any association with the Chinese government and pledges not to share US user data with Beijing.
In response to the new law, TikTok’s CEO vowed to challenge it in court.
However, experts cautioned that national security concerns may outweigh free speech protection in this case.
TikTok, with an estimated valuation in the tens of billions of dollars, presented a lucrative but complex acquisition opportunity.
Potential buyers are faced with competition concerns and the necessity of gaining Beijing’s approval, adding another layer of complexity to any potential deal.
Despite the uncertainty, ByteDance’s investors, which include US firms and Japan’s SoftBank, stand by the company.
They view TikTok US as a small part of ByteDance’s overall business and indicate they would not sell even if it faces a ban in the US.
Meanwhile, Beijing opposed any forced sale of TikTok and vows to protect Chinese companies. ByteDance, having ascended to one of the most valuable companies globally, underscores that TikTok represents only a fraction of its revenue stream.
