ByteDance wants to kick off TikTok in the US market rather than selling it to an American firm
TikTok’s parent company, ByteDance, would have to shut down TikTok in the US market rather than sell it to an American firm. Following many assertions and statements for years, finally, it appears that ByteDance wants to ditch TikTok from the US market. Menahile, earlier reports significantly suggested that eventually TikTok will get banned in the US and was officially approved by the US House, Senate, and President of the US, Biden.
According to a source shared by Reuters via Android Police, ByteDance, which is the parent company of TikTok, seems looking up to ditching TikTok in the US completely rather than selling it to an American firm, while after the official approval, ByteDance was given the last 270-day deadline that either the company needs to release TikTok from its ownership forever or completely stop TikTok in the US market.
ByteDance counts a small part of TikTok’s revenue, though:
Meanwhile, the company is currently eyeing over some other legal options, but if all the legal options proved unsuccessful, then it’s quite clear that TikTok would be leaving the US market forever. On the flip side, some sources also reveal that the highly engaging properties of TikTok are due to its core algorithms, while these core algorithms are the most essential section of ByteDance’s technology. Moreover, this ditching of TikTok in the US will not really impact ByteDance’s current operations in the US market, as the company accounts for a small part of revenue through the app.
Sources further added that last year, TikTok gained about 25% of its revenue from the US market, which significantly means that it could be a sudden decrement within the revenue stream. However, ByteDance’s dedicated app, Douyin, which is certainly a Chinese version of TikTok, Also, no American firm is willing to pay billions to acquire TikTok without its core algorithms. Meanwhile, all these factors significantly indicate that if the legal efforts proved to be a failure, TikTok would have to leave the US market for sure.
