Reuters: TikTok will be closed rather than sold in the US

TikTok parent company ByteDance plans to challenge the ban in court and has no plans to sell TikTok's U.S. operations.
TikTok Office Los Angeles

The US government has now approved the groundbreaking national security package after it was signed into law by President Joe Biden. The new regulation effectively gives TikTok parent company ByteDance an ultimatum to sell its US business to a local company within the next nine months. Otherwise there is a risk of an effective ban on the platform.

Reuters now reports that ByteDance is not ready to sell TikTok to a US company. Instead, the company would prefer to close its platform. TikTok’s algorithms are considered central to the operation of the app. Therefore, a potential sale of the platform is not feasible from a business perspective. ByteDance will appeal the ban in court. The Chinese hope to be able to block the recently passed law.

In related news, The Information published a report that ByteDance was exploring the possibility of acquiring a majority stake in TikTok. This deal would explicitly state that the algorithms would not be sold. However, ByteDance subsequently denied these claims in a press release on the Chinese media platform Toutiao.

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