TikTok’s Chinese-owned parent company, ByteDance, would prefer the United States government ban the social media app rather than sell it to a non-Chinese buyer. According to Reuters, citing four anonymous sources, ByteDance does not wish to part with control over the app’s algorithm, which it views as critical to the success of its network of technology ventures.
ByteDance has signaled it intends to pursue legal action against the Biden government to halt the newly signed law, forcing it to divest from TikTok or face the app’s ban. While TikTok only accounts for a relatively small share of ByteDance’s overall revenue, its algorithm, which determines what content is promoted to users and encourages continued engagement on the app, is far more valuable. As Americans only account for a small portion of the app’s overall user base, ByteDance prefers shuttering its U.S. presence instead of losing control of TikTok’s algorithm.
The Chinese company denied earlier reports on Thursday it was exploring avenues to sell the TikTok social media app. On Wednesday, TikTok’s CEO Shou Zi Chew said he expects the company to win its legal challenge against the divestment law. However, the National Pulse previously reported that House Republicans worked with officials at the Department of Justice to ensure the language of the law would make it difficult to overturn in court.
As it stands, ByteDance has until January 19, 2025, to find a buyer for the TikTok app. The U.S. government, however, could extend the deadline an additional three months if it believes ByteDance is close to making a sale. If ByteDance chooses not to sell or cannot reach an agreement with a purchaser, the U.S. ban on TikTok will take effect.
