The company denied byteDance’s claims that tikTok shares were being sold. While an investigation by US officials continued, TikTok’s parent company, ByteDance, allegedly held preliminary talks on the sale of shares. ByteDance, however, has said it is not interested in putting its shares in TikTok up for sale.
“From time to time you can read inaccurate news in the media,” tikTok executive Alex Zhu said in a note to employees at the company. Refuting media reports, Zhu stressed that the management team has in no way met with potential buyers for TikTok and has no intention of doing so. Zhu’s statements, as well as the media reports by a TikTok official, “these rumors are completely worthless,” he said.
TikTok, which has recently been highly studied by US authorities, was recently brought up when senators warned the public that the practice posed a security threat. According to media reports, consultants had made many suggestions to the ByteDance management team, ranging from an aggressive legal defence and operational corporate separation to the removal of a majority share in TikTok. Thus, the parent company would not represent any security threats in the review conducted by the U.S. Authorities. It was also stated that ByteDance wanted to continue to retain control of TikTok.
In addition to these developments, the United States Foreign Investment Committee (CFIUS) has also focused on the acquisition of ByteDance’s Musical.ly in 2017. This research will reveal whether ByteDance should dispose of Musical.ly assets that helped create the TikTok platform.
As part of the CFIUS investigation, TikTok is thought to refrain from “disposing of the Musical.ly assets acquired. As the political tension between the United States and China increases, so do investigations against China-based technology companies.
Senator Marco Rubio said in a statement:
ByteDance recently began cooperating with US companies to address these concerns. In October, the company hired a US law firm to evaluate TikTok’s content moderation processes, and another US company agreed to review Tiktok’s security practices.
Nevertheless, tikTok’s image in China has not yet been changed. Because the practice’s growth in the United States is slowing. The number of first-time downloaders in the third quarter reached 177 million, while TikTok experienced a 4 percent decline compared to the same period last year. TikTok’s suspension of the account criticizing the violence against uighur Turks was almost supported by Marco Rubio’s statements. Although the company said it had accidentally suspended the account, the statement was not very convincing for users. As far as I’m concerned, ByteDance can part ways with Douyin, the Chinese version of TikTok, even if byteDance doesn’t sell the company’s shares.