TikTok's Chinese Parent Declares No Sale to US
Following US law to force TikTok's Chinese parent company, ByteDance, to sell the hugely popular video app or be banned in America, the company has revealed that it has no intentions of selling the business.
"ByteDance doesn't have any plans to sell TikTok," the company posted on its official account on Toutiao, a social media platform it owns.
ByteDance stated earlier this week its intention to contest in court what it deems an "unconstitutional" law. This response follows an article by The Information suggesting the exploration of a potential sale of TikTok's US operations minus its algorithm.
ByteDance refuted these reports, labeling them as "false rumors" with a screenshot of the article stamped with the Chinese characters for the same.
ByteDance, the owner of TikTok, refuted the report via a social media platform it operates. The law, signed by US President Joe Biden on Wednesday, requiring either a sale or a ban, underscores concerns in the US and other Western nations regarding Beijing's increasing influence over private companies like ByteDance and the data they possess.
Despite these concerns, TikTok has consistently denied allegations of Chinese government control over ByteDance.
"We are confident and we will keep fighting for your rights in the courts," said TikTok boss Shou Zi Chew in a video posted on the platform this week.
"The facts, and the Constitution, are on our side... rest assured, we aren't going anywhere."
How will the US TikTok ban affect me?
According to TikTok, ByteDance's Chinese founder owns 20% of shares, through a controlling stake in the company.
About 60% is owned by institutional investors, including major US investment firms Carlyle Group, General Atlantic, and Susquehanna International Group.
The remaining 20% is owned by its employees around the world and three of ByteDance's five board members are American.
The Chinese government has also dismissed such concerns as paranoia and has warned that a TikTok ban would "inevitably come back to bite the US".
However, TikTok is not facing an immediate ban in the US.
The new law gives ByteDance nine months to sell the business, and an additional three-month grace period, before a potential ban can be enforced.
That means the sale deadline would most likely come some time in 2025, after the winner of the 2024 presidential election takes office.
