TikTok execs are exploring the possibility of separating from its parent company, ByteDance, to address national security risk issues in the US, Bloomberg reported.
This split could take the form of a sale or IPO and is seen as a last resort if the firm’s current proposal with US security officials is not approved.
The short-video app is also facing potential legislation in US Congress that would mandate such a separation. Lawmakers have proposed bills that would ban or sell TikTok due to concerns about data sharing with the Chinese government.
The platform has about 138 million active users and more than 210 million downloads in the US.
TikTok spokesperson Brooke Oberwetter has stated that banning or divesting the company from ByteDance would not address national security concerns about data transfers. Under TikTok’s plan, Project Texas, US user data would be held to a “higher security standard than any comparable American company.”
See also: CapCut could be ByteDance’s next cash cow
The development follows US lawmakers giving President Joe Biden the power to ban TikTok, flagging the app as a national security threat. Shou Chew, the short-video app’s CEO, has been asked to testify in the US next week to address security concerns.
Editing by Lorenzo Kyle Subido
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