ByteDance, the parent company of TikTok, has firmly stated via its official account on Toutiao that it has no intentions to sell the popular video-sharing app, Reuters is reporting.
Recent speculations arose after a report by The Information suggested that ByteDance was considering selling TikTok’s U.S. operations. The report hinted at a potential sale that excludes TikTok’s proprietary algorithm, which plays a crucial role in recommending videos to its users.
Sources familiar with the matter revealed that ByteDance has been internally discussing options to offload a majority stake in TikTok’s U.S. business.
These discussions are reportedly leaning towards potential buyers outside the technology sector. Notably, any prospective sale would exclude TikTok’s unique video-recommendation algorithm.
The timing of these internal deliberations coincides with recent legislative actions in the United States. On Wednesday, U.S. President Joe Biden signed a new law mandating TikTok to sever its ties with ByteDance within a timeframe of nine to twelve months.
Failure to comply with this requirement could lead to a ban on TikTok in the U.S.
In response to the new legislation, TikTok has expressed its intent to challenge the law in court. The company stands firm in defending the First Amendment rights of its user base.
Additionally, as a precautionary measure, ByteDance’s staff have been mapping out potential scenarios for the divestiture of TikTok in case the legal battle doesn’t swing in their favor.
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Given the dysfunctional nature of the US legal system. They won’t need to sell TikTok. Even if they do, it’s akin to dad selling the house to mom.