- ByteDance weighs shuttering TikTok’s US operations amid privacy, ban concerns.
- Shared algorithms with China complicate potential sale of TikTok.
- Retaining prized algorithm outweighs losing US market for ByteDance.
Dance or ditch?
In a bold move, ByteDance, the parent company of the wildly popular video-sharing app TikTok, is reportedly considering shuttering its US operations rather than succumbing to pressure to sell the platform.
This high-stakes decision comes amid escalating tensions over privacy concerns and calls for a nationwide ban on the Chinese-owned app.
While TikTok’s addictive algorithm has captured the hearts (and screen time) of millions worldwide, it may also be the app’s undoing in the US market.
Sources suggest that the shared algorithms between TikTok and ByteDance, registered as intellectual property in China, could complicate any potential sale, leaving the company to weigh its options carefully.
Minimal impact, maximum strategy
Interestingly, the report notes that TikTok accounts for a relatively small portion of ByteDance’s overall revenue and user base, suggesting that an exit from the US market may have a minimal impact on the company’s bottom line.
However, such a move would enable ByteDance to retain its prized algorithm, a strategic decision that could potentially outweigh the loss of the lucrative American market.
To read the original article: https://www.techinasia.com/tiktok-may-leave-us-instead-of-selling-report
