ByteDance Would Rather Shut Down TikTok Than Sell It: Sources
ByteDance, the owner of TikTok, would rather shut down the app in the US than sell it if they are unable to fight legislation to ban it from app stores, according to four sources.
The reasons for this decision are that the algorithms TikTok uses are essential to ByteDance's overall operations, making a sale of the app with those algorithms unlikely.
ByteDance, the Chinese parent company of TikTok, would rather shut down the app in the US than sell it to an American buyer in a worst-case scenario.
This is because TikTok contributes a small percentage to ByteDance's total revenues and daily active users.
A shut-down would have minimal impact on ByteDance's business, and the company would not have to give up its core algorithm.
ByteDance declined to comment on the matter but denied plans to sell TikTok's US business in a statement.
TikTok is challenging a new law signed by President Joe Biden that could ban the popular social media app in the US.
The legislation, which passed in the Senate with overwhelming support, aims to address concerns that China could access Americans' data or use the app for surveillance.
In response to a request for comment from Reuters, a TikTok spokeswoman referred to a statement from ByteDance, TikTok's parent company, posted on Toutiao.
TikTok CEO Shou Zi Chew expects the company to win the legal challenge and has stated that the app is used by 170 million Americans.
ByteDance, the Chinese parent company of TikTok, would rather shut down the app in the US than sell it to an American buyer in a worst-case scenario.
This is because TikTok contributes a small percentage to ByteDance's total revenues and daily active users.
A shut-down would have minimal impact on ByteDance's business, and the company would not have to give up its core algorithm.
ByteDance declined to comment on the matter but denied plans to sell TikTok's US business in a statement.
TikTok is challenging a new law signed by President Joe Biden that could ban the popular social media app in the US.
The legislation, which passed in the Senate with overwhelming support, aims to address concerns that China could access Americans' data or use the app for surveillance.
In response to a request for comment from Reuters, a TikTok spokeswoman referred to a statement from ByteDance, TikTok's parent company, posted on Toutiao.
TikTok CEO Shou Zi Chew expects the company to win the legal challenge and has stated that the app is used by 170 million Americans.
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