TikTok, the widely-used short video platform, is contemplating legal recourse before entertaining any potential sale of its assets owned by the Chinese company ByteDance, should the United States enact legislation impacting its service.
ByteDance’s Last Resort: Sale Consideration Amid Regulatory Pressure
ByteDance views the sale of TikTok as a final option, as reported by Bloomberg, citing unnamed sources. Notably, such a sale would necessitate approval from the Chinese authorities, who previously expressed staunch opposition to coerced divestitures. The company’s strategies remain fluid, subject to the unfolding developments.
Engaging with Lawmakers: TikTok’s Advocacy Efforts on Capitol Hill
Recently, TikTok’s CEO, Shou Zi Chew, engaged with American lawmakers on Capitol Hill to address the matter. Two House committees introduced a bill last week aiming to compel the sale of TikTok’s assets, with a vote scheduled for today. TikTok’s leadership also seeks to communicate its stance to Senate members, who were not involved in drafting the bill, notes NIX Solutions.
While a TikTok spokesperson refrained from officially commenting on the company’s plans, they highlighted the bill’s implication of a “predetermined outcome – a complete ban on TikTok in the United States.” Notably, last March, the platform explored separating from ByteDance to evade potential US restrictions.
This developing situation underscores TikTok’s efforts to navigate regulatory challenges amid geopolitical tensions, with legal avenues emerging as a pivotal consideration in safeguarding its operations.