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ByteDance, the Chinese parent company of TikTok, has firmly stated that it has no plans to sell the popular video app despite a US law mandating its sale or facing potential bans in the United States.
The company has also announced that it will challenge the law in court.
In response to media reports suggesting that ByteDance was exploring ways to sell TikTok without its algorithm, the company issued a statement on its social media network, Toutiao, clarifying that “ByteDance doesn’t have any plans to sell TikTok” and that foreign media reports suggesting otherwise are not true.
US President Joe Biden signed the sell-or-ban legislation into law on Wednesday, raising concerns about the Chinese Communist Party’s control over ByteDance and its data.
TikTok has repeatedly denied claims that the Chinese government controls the company.
TikTok CEO Shou Zi Chew posted a video on the app, reassuring users that the company is confident in its legal position and will continue to fight for their rights in court.
He emphasized that the facts and the Constitution are on their side, and that TikTok is “not going anywhere.”
ByteDance reportedly owns 20% of the company through a controlling interest, with 60% of the company controlled by institutional investors, including prominent US investment firms such as Susquehanna International Group, General Atlantic, and Carlyle Group.
Three of ByteDance’s five board members are Americans, while the remaining 20% is held by the company’s global workforce.
The Chinese government has criticized the potential ban, warning that it would “inevitably come back to bite the US” and dismissing concerns as hysterical.
However, a TikTok ban is not imminent in the US, as the new law provides ByteDance with nine months to sell the company and an additional three months of grace.
This means that any potential sale would likely occur in 2025, following the inauguration of the 2024 presidential victor.
As the situation unfolds, both TikTok and ByteDance are preparing to challenge the US law in court, maintaining their stance against a sale and asserting their confidence in the legal process.
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