Chinese parent company ByteDance, the owner of TikTok, has stated that it has no intention of selling the popular video-sharing app, following the passing of a US law that would require its sale or face a ban in America.
ByteDance made the announcement on its official account on the social media platform Toutiao. The company’s response came after an article by The Information suggested that ByteDance was exploring the potential sale of TikTok’s US operations without including its algorithm.
ByteDance’s firm denial of the reports was accompanied by a screenshot of the article with the Chinese characters for “false rumor” stamped on it. Conversely, TikTok has not yet issued an official statement in response to the situation. Earlier this week, TikTok had announced its plans to challenge the “unconstitutional” law in court.
The US law signed by President Joe Biden aimed to address concerns over Beijing’s influence and control over private companies, including ByteDance and the data it possesses. ByteDance has consistently denied allegations of Chinese government control.
The law provides ByteDance with a nine-month period to sell TikTok, followed by an additional three-month grace period before a potential ban can be enforced, likely extending the sale deadline to sometime in 2025.
TikTok’s ownership structure reveals that its Chinese founder holds a 20% stake, with institutional investors and employees owning the majority and three of ByteDance’s five board members being American.
