In response to recent reports suggesting ByteDance’s contemplation of selling TikTok following the passage of the TikTok Ban Bill in the United States, the parent company has vehemently denied any such intentions.
According to a report by BBC on Friday, ByteDance refuted claims made by an American news website, The Information, regarding its alleged exploration of selling TikTok’s US business without the crucial recommendation algorithm.
The backdrop to this denial is the recent signing of the TikTok Ban Bill into law by President Joe Biden, which threatens to ban the popular short video app unless ByteDance divests from it within the next nine months to a year.
ByteDance’s stance, however, appears firm. The company, as reported by Reuters, expressed a preference for shutting down TikTok rather than selling it, should all legal avenues to challenge the ban be exhausted.
Sources close to the matter revealed that ByteDance considers TikTok’s algorithms integral to its overall operations, making a sale of the app without them highly improbable. Despite TikTok representing only a fraction of ByteDance’s total revenues and user base, the parent company appears resolute in its stance, suggesting a shutdown in the US market might be preferable to a sale under unfavorable conditions.
These sources, who opted to remain anonymous due to confidentiality concerns, further asserted that a shutdown of TikTok would yield minimal impact on ByteDance’s broader business, while allowing the company to retain control over its core algorithm.
As the standoff between ByteDance and US authorities continues, the fate of TikTok in one of its most significant markets remains uncertain, with implications not only for the company but also for the millions of users who engage with the platform daily.
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