ByteDance has no intention to sell TikTok in the US amid scrutiny: report

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TikTok’s future is unclear in the US, with the country mulling a ban of the app unless it splits from its Chinese parent firm ByteDance. However, Zhang Yiming – ByteDance’s founder and a major shareholder – is resisting any potential sale of the short-video platform, Caixin reported.

Should it be approved, the bill would give TikTok 180 days to branch away from ByteDance or leave the US market. The US House passed the bill earlier this month, but it will have to be voted on by the US Senate before being made into law.

Despite the situation, sources close to the matter told Caixin that ByteDance is not looking for potential buyers, as the company doubts a deal could be made in time.

The company already views the US bill’s conditions as equivalent to a ban, the sources said. For a sale to be made, a deal would need the green light from Chinese regulators, which is unlikely, according to legal experts.

In the worst-case scenario, TikTok may have to abandon the US market, leading to a probable decrease in ByteDance’s value as well as an increase in investor pressure.

As of April 2023, TikTok had over 116.5 million active users in the US aged 18 and above – its target advertising demographic. This represents the app’s largest market worldwide, followed by Indonesia with 113 million users and Brazil with 84.1 million.

ByteDance’s situation may serve as a warning to other companies with Chinese ties that are operating in the US, as they may struggle with following the country’s laws.

In Southeast Asia, TikTok has also received scrutiny from local regulators. Last year, Indonesia released social commerce rules that led to the temporary closure of TikTok Shop, while a Malaysian government official said that TikTok’s efforts to follow local laws were “unsatisfactory.”

See also: TikTok Shop gets winning hand in Indonesia via Tokopedia mega deal