The social media company clarified the looming US ban on TikTok recently that it has no plans to sell or divest ByteDance, with the platform leaning more towards shutting down its operations in the country. This follows an earlier report that rumored TikTok is considering its options for its continued operations in the United States, and the social media shutting down these hearsays.
It follows the monumental approval of the US Senate regarding the bill that will ban TikTok in the country should it continue its operations under ByteDance.
TikTok Would Not Sell, Divest Operations Despite US Ban Threats
TikTok is not selling, and the company made it clear via its recent statement to the New York Post, which disputes the earlier story from The Information behind its options consideration of divesting. The social media platform reiterated that it would rather shut down its operations in the US than sell its ownership to an American company, as the progressing bill requires.
It was revealed that The Information released an inaccurate report regarding TikTok's plans to move forward in the US, saying that it would explore the scenarios wherein TikTok's US business would be sold without its algorithm.
Moreover, it follows the recent claim by TikTok CEO Shou Zi Chew, who will enter a legal battle with the US should President Joe Biden sign it into law.
TikTok is Not Divesting: ByteDance to Remain?
With this recent clarification, TikTok is making it clear that it is not divesting, and this means that it will remain under ByteDance's umbrella moving forward. It also means that ByteDance will remain as its owner and parent company, with the social media executives looking to fight it out in court in the future.
The Information further said that selling ByteDance's business will only have a limited impact on TikTok operations, but it will not necessarily mean giving up the famed algorithm.
TikTok's US Ban Saga
The massive TikTok US Ban saga, which threatened its operations in the country, has been going on for a long time, but it gained significant traction earlier this year as lawmakers pushed for its passing in the US Congress and the White House. At one point, President Joe Biden expressed his sentiments regarding this matter, saying he would sign the bill into law if it passed Congress.
It followed the massive move by TikTok, which sent notifications and pop-up messages to its users asking them to practice their constitutional rights and urge Congress to vote "No" during the House vote. However, this backfired against TikTok, as users could bombard the representatives' offices with calls, leading to a landslide 50-0 vote for the bill's progression.
ByteDance's ownership of TikTok caused massive scrutiny in the country for its alleged access to US user data and many other issues like security and mental health effects against platform users. However, the main focus of the RESTRICT Act is to brand TikTok as a foreign entity that is subject to selling the company to a US company, with the company wanting to shut down rather than adhere to the ramping bill.
Related Article: TikTok Faces Potential Ban or US Sale After Senate Vote
