The parent company of TikTok, ByteDance, has firmly opposed the stance taken by the US government.
The Chinese tech giant maintains that it has no intention of selling the immensely popular video-sharing platform despite the US passing a law compelling the sale of TikTok or face a ban in America.
This decision has significant implications, as the absence of TikTok could lead to decreased revenue for many content creators and small businesses worldwide. It is a stingray objective.
ByteDance made its position clear through an official statement posted on Toutiao, a social media platform it owns, affirming that there are no plans to sell the thriving TikTok.
Earlier in the week, TikTok announced its intention to challenge the constitutionality of the law in court.
The statement from ByteDance was prompted by speculation fueled by an article on The Information, suggesting that TikTok’s US operations were being explored for sale without its core algorithm. ByteDance refuted these claims, dismissing them as false rumors.
Regarding ownership, ByteDance’s Chinese founder holds a controlling stake of 20% in the company, while the majority (60%) is owned by institutional investors, including prominent US firms such as Carlyle Group, General Atlantic, and Susquehanna International Group. The remaining 20% is distributed among ByteDance employees worldwide. Additionally, three out of ByteDance’s five board members are American.
Despite concerns raised by the US and other Western countries about the Chinese government’s influence over ByteDance and its data holdings, TikTok has repeatedly denied any such control. The company remains confident in its legal position and vows to defend its rights in court.
While there is no immediate ban on TikTok in the US, the newly enacted law provides ByteDance with nine months to sell the business, with an additional three-month grace period before a potential ban could be enforced. This timeline suggests that the sale deadline would likely fall in 2025, after the winner of the 2024 presidential election assumes office.
The law, signed by US President Joe Biden, reflects growing concerns in the US and other Western countries about Beijing’s increasing control over private companies. Regardless, TikTok’s leadership reassures its users of their commitment to fighting for their rights, emphasizing confidence in the facts and the constitutionality of their position.
