- ByteDance’s founder Zhang Yiming opposes selling TikTok in the US.
- Finding a buyer and securing regulatory approval within the given timeframe is unlikely.
- TikTok may have to abandon its largest market, potentially decreasing ByteDance’s value.
Zhang Yiming opposes potential sale
As the United States mulls a ban on TikTok unless it separates from its Chinese parent company ByteDance, the platform’s future in the country remains uncertain.
However, according to a report by Caixin, Zhang Yiming, ByteDance’s founder and a major shareholder, is resisting any potential sale of the short-video platform.
The US House recently passed a bill that would give TikTok 180 days to split from ByteDance or exit the US market, but the bill still needs to be voted on by the US Senate before becoming law.
Challenges in finding a buyer and regulatory approval
Despite the situation, sources close to the matter told Caixin that ByteDance is not actively seeking potential buyers, as the company doubts a deal could be made within the given timeframe.
The company already views the conditions set forth in the US bill as tantamount to a ban. Moreover, legal experts suggest that any potential sale would require approval from Chinese regulators, which is unlikely.
In the worst-case scenario, TikTok may have to abandon the US market, leading to a probable decrease in ByteDance’s value and increased investor pressure.
TikTok’s global presence today
As of April 2023, TikTok had over 116.5 million active users in the US aged 18 and above, representing its largest market worldwide, followed by Indonesia with 113 million users and Brazil with 84.1 million.
ByteDance’s situation may serve as a warning to other companies with Chinese ties operating in the US, as they may face challenges in complying with the country’s laws.
TikTok has also faced scrutiny from local regulators in Southeast Asia, with Indonesia temporarily closing TikTok Shop due to new social commerce rules and a Malaysian government official deeming TikTok’s efforts to follow local laws “unsatisfactory.”
To read the original article: https://www.techinasia.com/bytedance-no-intention-sell-tiktok-report
