ByteDance Fails To Come Under US Pressure As No Plans For TikTok’s Sale On The Cards

TikTok’s future in the US remains uncertain after President Biden was seen approving a new bill that would ban the app in the country.

The only way out was to have the app separate from its Chinese parent firm ByteDance. And for that, it was given a 9-month deadline to achieve the target or bid farewell to US operations.

The news saw TikTok’s CEO vowing to fight the claims made by American lawmakers but many wondered whether or not it would succumb to the Congress’ pressure of being sold so it could function as a separate entity.

Now, the latest on this front has to do with how ByteDance is making it so clear how it would like to have operations shut down in America over the sale of the platform.

As per recently published reports, the figures of losses in the US are surging, and by allowing a shutdown, it would benefit more than exhausting billions worth of resources to challenge the US stringent legal policies in place to continue functions across different app stores in the country.

All of this platform’s algorithms rely on ByteDance’s core and that makes a sale likelihood close to none as mentioned by insiders who were familiar with the matter on Thursday.

Let’s not forget how massive of a tech giant ByteDance is and it’s interesting to learn how TikTok also contributes a fraction of the overall revenue due to daily active users.

Hence, the parent firm would much rather incur the opportunity while it still can of bidding farewell to losses in America than sell the company off to another buyer based in the US.

We can only imagine how the news is going to be taken by so many fans based in the US who have been using the app for both entertainment as well as business purposes.

The shutdown would limit the effect this business has on ByteDance’s earnings as the core algorithm would still belong to ByteDance, as mentioned by the Reuters report.

ByteDance is making it very clear that no plans are on the card for a sale anytime soon and the goal right now is to look for more better options for sale where the core algorithm remains with China but the business belongs to an American buyer if need be.

The firm’s CEO made it clear across social media on Wednesday how he would like to challenge the recent ruling that blocks legislation that has come into law by the US President.

It was interesting to see how the bill was passed by attaining a huge amount of support in the Senate and Congress who felt it was worrisome that American users’ data was no longer safe and easily accessible to sources belonging to China’s government.

The thought of surveillance going strong on this front was just another matter to worry about and the US vowed to never allow its security to get compromised on that front. But others see this as a political strategy that the Biden administration has chimed in before the elections that are soon ready to take center stage.

Whatever the case may be, one thing is for sure. Most of TikTok’s revenue comes from other markets like China and ByteDance’s TikTok Twin based in the country, Douyin, is really doing great in terms of revenue generation.

So yes, great progress is there and to for a company to admit this despite being secretive of its financial details means big things.

Image: DIW-Aigen

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