ByteDance Debunks TikTok Sale After Biden’s Divestment Mandate

ByteDance Debunks TikTok Sale After Biden’s Divestment Mandate

ByteDance, the Chinese parent company of TikTok, has vehemently denied rumors circulating in the media regarding the potential sale of the popular social media platform.

The company’s response comes in the wake of President Joe Biden’s bill, which mandates ByteDance to divest its ownership of TikTok or face a ban in the United States.

In a statement released on its news platform Toutiao, ByteDance dismissed the reports as “false rumors,” stamping the phrase across a screenshot of the Information’s report.

“Foreign media reports that ByteDance is exploring the sale of TikTok are untrue. ByteDance has no plans to sell TikTok,” the statement affirmed.

This public denial from ByteDance marks its first response since Biden signed the bill, which imposes a strict deadline of nine months for the sale, with the possibility of a three-month extension if negotiations persist.

Failure to comply with the mandate could lead to a ban of the app in the U.S., citing national security concerns as raised by lawmakers from both political parties.

TikTok, on the other hand, has vehemently denied allegations of being a security threat and has asserted its independence from the Chinese government’s influence.

In response to the bill, the social media platform has declared its intent to legally challenge what it deems an “unconstitutional ban.

“Despite conflicting reports surrounding TikTok’s future, including speculation about its valuation and potential sale,

ByteDance’s denial casts doubt on the accuracy of recent media speculation. The Information’s report had suggested that ByteDance was exploring the sale of a majority stake in TikTok’s U.S. business to a non-technology company like Walmart, albeit without the recommendation algorithm.

The valuation of TikTok’s global business remains uncertain, with estimates ranging from $20 billion to $100 billion, reflecting the ambiguity surrounding its actual worth compared to ByteDance’s estimated $200 billion valuation.

This disparity underscores the complexity and uncertainty surrounding the potential sale of TikTok and its broader implications for ByteDance’s financial standing.