TikTok could "divorce" its Chinese parent company ByteDance to continue operating in the United States
Posted: Sun Jan 05, 2025 8:53 am
The United States has recently become an extremely hostile country for TikTok , which is in fact planning to eventually ban it in the North American country.
For this reason, the social network's managers are reportedly considering a split from its parent company ByteDance if the agreements with the United States on data protection and national hong kong phone number data security do not ultimately come to fruition.
The split would take the form of a divestment, according to Bloomberg . And that divestment could translate into a sale or an initial public offering. Both options are, however, seen as a last resort and would only be implemented if the proposal that TikTok has submitted to the national security authorities of the United States is not approved. In addition, the Chinese government would also have to give the green light to the transaction.
TikTok has been in the spotlight for several months now, with both the United States and the European Union increasingly suspicious of the Chinese social network's use of its users' personal data , which the Beijing government is believed to have access to for espionage purposes.
The company admitted last year that its Chinese employees were indeed able to access TikTok users' data in the United States and Europe , thus corroborating reports reported by several media outlets.
For this reason, the social network's managers are reportedly considering a split from its parent company ByteDance if the agreements with the United States on data protection and national hong kong phone number data security do not ultimately come to fruition.
The split would take the form of a divestment, according to Bloomberg . And that divestment could translate into a sale or an initial public offering. Both options are, however, seen as a last resort and would only be implemented if the proposal that TikTok has submitted to the national security authorities of the United States is not approved. In addition, the Chinese government would also have to give the green light to the transaction.
TikTok has been in the spotlight for several months now, with both the United States and the European Union increasingly suspicious of the Chinese social network's use of its users' personal data , which the Beijing government is believed to have access to for espionage purposes.
The company admitted last year that its Chinese employees were indeed able to access TikTok users' data in the United States and Europe , thus corroborating reports reported by several media outlets.