ByteDance earns praise for stance on sell-or-ban measure
Beijing-based firm hailed for denying report that it eyes sale of stake in TikTok’s US operations
ByteDance has earned praise on mainland social media for denying a report that it was weighing a divestment of TikTok’s operations in the United States, a day after Washington enacted into law a sell-or-ban ultimatum against the popular short-video app.
Beijing-based ByteDance rejected a report by US digital publication The Information that it was “exploring scenarios” to sell a majority stake in TikTok’s US operations to firms outside the technology industry and without the algorithm that powers the platform.
In a statement posted on its Jinri Toutiao news platform, ByteDance said it had no plans to sell TikTok.
This marked the second time this year ByteDance has broken its silence on TikTok following its denial of a report by The Wall Street Journal that company co-founder Zhang Yiming had discussed a sale of the platform’s US business to potential buyers.
The official denials by ByteDance show the company’s confidence in TikTok’s anticipated legal challenge to the US sell-or-ban measure against the social media platform.
ByteDance sees TikTok as having “a chance to win” when its challenge to the US measure ends up in court, according to a source close to the matter, who declined to be named because the legal strategy is private.
The company would also prefer to shut down TikTok’s US operations rather than divest it after exhausting all legal options to fight the measure, according to a Reuters report yesterday that cited four sources.
Of the 52 comments to ByteDance’s denial on Jinri Toutiao, seven extolled the firm for “having a backbone” and sticking to its principles despite a potential commercial backlash in the US. Four others praised the company for “never bowing down to the US”.
On Weibo, China’s biggest microblogging site, the reaction to ByteDance’s denial highlighted broader issues at play. Some commenters said TikTok’s problems in the US had become political and “a sale would be seen as treason”, while others claimed ByteDance “wouldn’t dare” to divest the platform’s business in America.
TikTok chief executive Chew Shou Zi had earlier expressed optimism about the social media platform’s legal position.
“The facts and the constitution are on our side and we expect to prevail again,” Chew said in a video message posted on Wednesday after US President Joe Biden signed into law the legislative measure against TikTok.
The facts and the constitution are on our side and we expect to prevail again CHEW SHOU ZI, CEO, TIKTOK
Beijing, meanwhile, has indicated it would strongly oppose a forced sale of TikTok.
Privately held ByteDance is subject to Chinese laws, which means regulatory authorities can veto any deal involving the sale or transfer of the platform’s technology.
In 2020, then US president Donald Trump had pushed for a sell-or-ban ultimatum on TikTok that led to a deal between ByteDance and Oracle to acquire the platform. Beijing stepped in after updating the nation’s export control list to require government approval for the sale or transfer of the algorithm behind the app.