ByteDance, owner of short-form video platform TikTok, insisted it would close the platform in the US before moving to divest its interest, as the algorithms supporting the app are vital to it, Reuters reported.
In a short statement on Chinese news portal Toutiao, ByteDance wrote foreign media reports it is exploring the sale of TikTok are untrue.
“ByteDance has no plans to sell TikTok.”
Reuters reported a sale would include key ByteDance algorithms and is highly unlikely.
The company will first pursue all legal options following US President Joe Biden signing legislation into law earlier this week.
TikTok generates a small share of ByteDance’s revenue so a closure would have minimum impact on its business, Reuters stated.
ByteDance founder Zhang Yiming last month said he opposed any sale of the company and was not looking for a buyer after US politicians advanced the legislation ultimately approved by President Biden.
A sale would require approval from the Chinese government, which analysts say is unlikely since it would not allow critical algorithms to be transferred to non-domestic companies.
Comments