BETA
This is a BETA experience. You may opt-out by clicking here

Breaking

Edit Story

‘False Rumors’: ByteDance Denies It Is Exploring A TikTok Sale After Ban Bill

Following
Updated Apr 26, 2024, 03:03pm EDT

Topline

ByteDance, TikTok’s Chinese parent firm, denied a report Thursday that it is exploring a sale of the social media platform, responding to media speculation after President Joe Biden signed a bill threatening to ban the popular app unless Bytedance divests its ownership.

Key Facts

“Foreign media reports that ByteDance is exploring the sale of TikTok are untrue,” ByteDance said late Thursday on Toutiao, its news platform.

The post was in response to a report by The Information, a screenshot of which was included with the phrase “false rumor” stamped across.

The post is ByteDance’s first public comment since Biden signed a bill Wednesday ordering the company to sell TikTok.

In the U.S., the social media platform issued a statement on Wednesday saying it will legally challenge the “unconstitutional ban.

Get Forbes Breaking News Text Alerts: We’re launching text message alerts so you'll always know the biggest stories shaping the day’s headlines. Sign up here: https://joinsubtext.com/forbes

Key Background

On Wednesday, President Joe Biden signed legislation that gives ByteDance just nine months to sell TikTok. The deadline may be extended by three months if sale negotiations are ongoing. If the Chinese firm fails to divest its ownership, the popular social media app will be banned in the U.S. The House passed the legislation on Saturday and the Senate on Tuesday with lawmakers from both parties deeming TikTok a threat to national security. TikTok, however, has repeatedly dismissed these allegations and has said the Chinese government had no control over the platform.

What To Watch For

After the ban bill was signed into law, conflicting reports have emerged about TikTok’s future, with varying estimates about the platform’s valuation in the event of a sale. The Information’s report, which ByteDance dismissed, said the company was exploring the possibility of selling a majority stake in TikTok’s U.S. business to a non-technology company, like Walmart, without the recommendation algorithm. A report by Reuters, however, said ByteDance was mulling the opposite course of action and would prefer a TikTok ban over a forced sale if its legal options fail. The valuation of TikTok’s global business as a separate company is unclear, with the Wall Street Journal reporting it could be between $20 billion and $100 billion. The report said ByteDance executives consider TikTok to be worth half of ByteDance’s estimated $200 billion valuation.

Further Reading

ByteDance prefers TikTok shutdown in US if legal options fail, sources say (Reuters)

What Is TikTok Worth? Some Say $20 Billion, Others Say $100 Billion (Wall Street Journal)

Follow me on TwitterSend me a secure tip