TikTok could be sold to US investors
THE embattled viral video app TikTok could be split off from its Chinese parent company and sold to investors in the United States in order to shield it from regulatory wrath, according to reports.
ByteDance, the massive Beijing start-up behind TikTok, is said to be discussing the plan with a small group of its US investors. Insiders told website The Information the plan was tentative and preliminary, representing only one possible solution to the threat the US might follow India in banning TikTok. A TikTok spokesperson said: “As we consider the best path forward, ByteDance is evaluating changes to the corporate structure of its TikTok business ... we will move forward in the best interest of our users, employees, artists, creators, partners, and policymakers.” That was a sharp contrast with TikTok’s stance last year, when it categorically denied similar reports claiming there had been “no discussions about any partial or full sale”. A formal split could insulate TikTok from widespread suspicion around its relationship to the Chinese government, but would bring serious complications, as well as a steep price for any new buyer given its explosive audience growth.