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TikTok Will Not Be Sold Despite Looming U.S Ban
https://www.whatjobs.com/news/usa/us-business-news/tiktok-will-not-be-sold-despite-looming-u-s-ban
By Hugh Fort in US business news, posted April 27, 2024
TikTok owner ByteDance says it will not sell the video app despite the U.S. pushing forward with legislation to ban it.
In a post on Toutiao, its social media platform, the company simply said: "ByteDance doesn't have any plans to sell TikTok."
The BBC reports TikTok is planning to legally challenge the law, calling it "unconstitutional."
Reports had suggested TikTok could consider selling its U.S Operations without its core algorithm.
However, ByteDance refuted these claims, saying: "Foreign media reports of ByteDance selling TikTok are not true," emphasizing the inaccuracy with an image marked "false rumour."
President Joe Biden signed the legislation that could lead to a ban earlier this week.
This action reflects ongoing concerns in the U.S. and other Western nations about the influence of the Chinese Communist Party over ByteDance and the data it manages.
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Despite allegations of Chinese governmental influence over ByteDance, TikTok has consistently denied such claims.
Shou Zi Chew, CEO of TikTok, affirmed the company's stance in a recent video: "The facts, and the Constitution, are on our side... rest assured, we aren't going anywhere."
Details on the ownership of ByteDance reveal that its Chinese founder holds a 20 percent stake.
"The facts, and the Constitution, are on our side... rest assured, we aren't going anywhere"
Approximately 60 percent is held by institutional investors like Carlyle Group, General Atlantic, and Susquehanna International Group.
Employees globally and three American board members own the remaining shares.
China has criticized the U.S. concerns as overblown and cautioned against the repercussions of a TikTok ban.
Under the new law, ByteDance is allowed up to nine months to negotiate a sale.
It also has a further three months' grace period.
This could potentially set the final deadline into 2025, after the next U.S. presidential inauguration.
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