TikTok considers separation from parent ByteDance
The short video service TikTok wants to pre-empt a possible ban in the USA and Europe and is considering a separation from its Chinese parent ByteDance. As US media have reportedly learned from insider circles, plans to this effect are being discussed in the social media portal's executive suite. The spin-off is intended to maintain the continued operation of the service and its profitability.
"TikTok's leadership is discussing the possibility of separating from Chinese parent company ByteDance to defend against accusations that it would compromise national security," it said in a Bloomberg-report. However, a sale of the subsidiary, which could lead to an outright sale or an initial public offering of securities, is seen as a "last resort."
"Whether or not the sale actually happens depends on whether or not the national security commissioners in various countries sign off on the portal's existing practices," the experts said. However, they also stress that TikTok bosses probably could not decide on the implementation of such spin-off plans all by themselves. It is much more likely, they say, that the Chinese government will take the helm on this matter itself. "It would have to approve the sale. Given their previous statements on the subject, they might refuse to do so," the assessment said.
Pressure from the White House
As early as 2020, during the term of office of former US President Donald Trump, fears were voiced that TikTok could be used by China specifically to manipulate public opinion in other countries or to act as a spying tool. At that time, too, pressure was increased on the portal operators to sell their own app to new US owners. But under the new President Joe Biden, these plans were dropped again. In view of the recent tensions between the two superpowers, the White House is now switching back to the old line. (pte/swi)
