ByteDance, the parent company behind TikTok, is reportedly looking into options to address the concerns regarding the alleged national security allegations from the US Government.
Previously, we had reported on news regarding the US Government suing TikTok, the popular short video app, for harvesting user data and sending it back to China. Now, it seems that ByteDance is considering multiple options for its defense against this accusation. It ranges from an aggressive denial and trial in courts to operational separation from TikTok itself.
According to a report, ByteDance selling the majority stake in TikTok could have it rake in about 10 Billion US Dollars. This evaluation was calculated after the app’s valuation surged in 2019 as it gained popularity on a global scale. A few news agencies have also stated that the company is currently one of the world’s most valuable startups. Unfortunately, the tensions between the US and China in the form of trade disputes are threatening its operations and future growth.
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If ByteDance were to sell TikTok, the most logical option would be to offer up a majority stake in TikTok to financial investors. Notably, companies like SoftBank, Sequoia Capital, and Susquehanna International are large financial firms that were one of the early investors in the social media app. Thus, a sale of its majority stake could allow the parent company to cash in when the app is extremely popular and avoid any future difficulties.
Recently, the US Army has even launched an investigation into the app stating its handling of user data puts military information and practices at risk as well. Additionally, there is an abundance of evidence regarding the app censoring data in accordance with Chinese censorship standards which also point towards its accused allegiance.
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(Via)
