ByteDance Asserts It Won’t Sell TikTok Despite US Pressure: What’s Next?

(CTN News) – ByteDance, the Chinese parent company of TikTok, has firmly stated that it has no plans to sell the immensely popular video app, despite recent pressures from the United States government.

In response to speculation and reports suggesting otherwise, ByteDance took to its official account on Toutiao, a social media platform it owns, to assert its stance.

“ByteDance doesn’t have any plans to sell TikTok,” the company declared in its statement, which was shared on Toutiao. This affirmation came amidst growing concerns following the passing of a US law aimed at compelling BD to divest its ownership of TikTok within the country or face a ban.

TikTok Remains Mum Amidst Speculation

TikTok, however, has yet to issue an official comment in response to inquiries from media outlets such as the BBC regarding ByteDance’s position.

Earlier this week, TikTok made it clear that it intends to contest the legality of the law, deeming it “unconstitutional” and signaling its readiness to challenge it in court.

ByteDance’s statement was prompted by an article published by The Information, a prominent technology industry website, which suggested that ByteDance was exploring the possibility of selling TikTok’s US operations, albeit without transferring the proprietary algorithm that powers the platform.

In refuting these claims, ByteDance emphasized the inaccuracy of foreign media reports regarding any potential sale, labeling them as “false rumors.”

The company went as far as sharing a screenshot of The Information’s article with the Chinese characters for “false rumor” stamped across it, further solidifying its position.

US President Joe Biden signed the sell-or-ban measure into law on Wednesday, solidifying the government’s stance on ByteDance’s ownership of TikTok.

This move underscores growing concerns in the US and other Western nations regarding Beijing’s increasing control over private companies and the potential implications for data security.

The tightening grip of the Chinese Communist Party over ByteDance has sparked worries about the extent of influence the government holds over the company and the data it possesses.

Despite repeated denials from TikTok, asserting that the Chinese government doesn’t control ByteDance, skepticism persists.

TikTok’s Defense and Ownership Structure

In a video posted on the platform this week, TikTok CEO Shou Zi Chew expressed confidence in their legal battle, affirming their commitment to defending users’ rights in court.

He emphasized the alignment of facts and constitutional principles on their side, assuring users that TikTok remains steadfast in its position.

Contrary to the notion of complete Chinese ownership, TikTok clarifies that ByteDance’s Chinese founder holds only a 20% stake in the company, primarily through a controlling interest.

The majority of shares, approximately 60%, are owned by institutional investors, including prominent US investment firms such as Carlyle Group, General Atlantic, and Susquehanna International Group.

Moreover, a significant portion, 20%, is held by TikTok employees worldwide. Additionally, three out of BD’s five board members are American.

While the Chinese government dismisses concerns over its control as unfounded paranoia, it has cautioned that a ban on TikTok would have repercussions for the US. However, it’s important to note that TikTok is not facing an immediate ban.

ByteDance Faces Tight Deadline

The new law provides BD with a nine-month window to divest its TikTok operations, with an additional three-month grace period before a potential ban could take effect.

This timeline suggests that the deadline for the sale would likely fall sometime in 2025, coinciding with the assumption of office by the winner of the 2024 presidential election.