ByteDance, the Chinese parent company of TikTok, refuted claims on Thursday that it is considering selling the popular social media platform, dismissing media speculation in the wake of President Joe Biden’s bill threatening a ban unless ByteDance divests its ownership.
In a statement posted on its news platform Toutiao, ByteDance categorically denied the reports, stamping the phrase “false rumor” across a screenshot of The Information’s report.
- “Foreign media reports that ByteDance is exploring the sale of TikTok are untrue. ByteDance has no plans to sell TikTok.”
This public denial marks ByteDance’s first response since Biden signed the bill, which mandates the company to divest TikTok, setting a tight deadline of nine months for the sale, with the possibility of a three-month extension if negotiations are ongoing.
Failure to comply would result in a ban of the app in the U.S., a measure justified by concerns over national security, as perceived by lawmakers from both parties.
TikTok, however, has staunchly refuted allegations of being a security threat and has asserted its independence from the Chinese government’s influence. In response to the bill, the social media platform declared its intent to legally contest what it deems an “unconstitutional ban.”
What you should know
Despite conflicting reports about TikTok’s future, with speculation swirling around its valuation and potential sale, ByteDance’s denial throws into question the accuracy of recent media speculation.
The Information’s report suggested ByteDance was exploring the sale of a majority stake in TikTok’s U.S. business to a non-technology company like Walmart, albeit without the recommendation algorithm.
The valuation of TikTok’s global business remains ambiguous, with estimates ranging from $20 billion to $100 billion, reflecting uncertainty surrounding its actual worth compared to ByteDance’s estimated $200 billion valuation.
This disparity underscores the complexity and uncertainty surrounding the potential sale of TikTok and its broader implications for ByteDance’s financial standing.
