ByteDance, the Chinese parent company of TikTok, has firmly stated that it has no plans to sell the business despite pressure from the US government. This declaration comes after the US passed a law mandating the sale of the immensely popular video-sharing app or face a ban in the country.
In a statement posted on its official Toutiao account, ByteDance affirmed, “ByteDance doesn’t have any plans to sell TikTok.” The company also indicated its intention to challenge the “unconstitutional” law in court. TikTok has not immediately responded to requests for comment from various sources, including the BBC.
The reassurance from ByteDance follows reports by The Information, a technology news website, suggesting that ByteDance was exploring the possibility of selling TikTok’s US operations without including the algorithm that drives its content recommendations.
ByteDance dismissed these reports as “false rumors” in its statement, accompanied by a screenshot of The Information’s article bearing the Chinese characters for “false rumor.”
The recent legislation, signed into law by US President Joe Biden, reflects growing concerns in Western countries about Beijing’s influence over private companies like ByteDance and the sensitive user data they possess. TikTok has consistently refuted allegations of Chinese government control.
TikTok CEO Shou Zi Chew expressed confidence in the company’s legal battle, affirming, “The facts, and the Constitution, are on our side… rest assured, we aren’t going anywhere.”
Regarding ownership, ByteDance’s Chinese founder holds a 20% stake in the company, with institutional investors like Carlyle Group, General Atlantic, and Susquehanna International Group owning approximately 60%. The remaining 20% is owned by global employees, and three of ByteDance’s five board members are American.
While the Chinese government has dismissed concerns over its influence, it has warned that a TikTok ban could have repercussions for the US. However, TikTok is not facing an immediate ban; the new law grants ByteDance nine months to divest its US operations, with an additional three-month grace period before any potential ban takes effect. This timeline suggests that the sale deadline would likely fall sometime in 2025, after the 2024 presidential election.
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