ByteDance, the Chinese parent company of TikTok, has firmly stated that it has no plans to sell the popular video-sharing app despite the recent passage of a US law mandating its sale or facing a ban in America.
In response to speculation regarding a potential sale, ByteDance clarified its stance through a post on its official Toutiao account, emphasizing, “ByteDance doesn’t have any plans to sell TikTok.”
This assertion came following reports by The Information suggesting the exploration of a sale of TikTok’s US operations without its core algorithm.
TikTok, however, did not immediately respond to requests for comment on the matter.
The controversy surrounding TikTok’s ownership and its ties to the Chinese government has heightened concerns in the US and other Western nations about data security and potential political influence.
Despite these concerns, TikTok has consistently refuted allegations of Chinese government control over ByteDance, with its CEO Shou Zi Chew asserting the company’s commitment to defending its rights in court.
ByteDance’s ownership structure includes a 20% stake held by its Chinese founder, while the majority ownership lies with institutional investors such as Carlyle Group, General Atlantic, and Susquehanna International Group. A significant portion of the company is also owned by its global workforce.
While the Chinese government has dismissed these concerns as unfounded, it has warned of repercussions for the US if TikTok were to face a ban.
However, such a ban is not imminent, as the new US law grants ByteDance a nine-month period to sell the business, with an additional three-month grace period before potential enforcement of a ban, likely extending the deadline into 2025.
Source – bbc.com
