Source: NurPhoto / Getty / TikTok / ByteDance
TikTok users were understandably upset after, in a rare act of bipartisanship, Congress members came together to pass a bill that was eventually signed by President Biden into law. The bill called for banning the platform if its Chinese-owned parent company, ByteDance, doesn’t sell it. According to an exclusive Reuters report, ByteDance will not sell, embracing the ban and leaving U.S. users in the cold.
“Four sources” tell Reuters that TikTok would prefer a ban over selling if the company exhausts its legal options. This news contradicts other reports that ByteDance was exploring the sale of TikTok, which ByteDance also immediately said was not true.
Reuters reports TikTok’s insanely good algorithm is at the core of this decision, with the source telling the website it is “deemed core to ByteDance’s overall operations, which would make a sale of the app with algorithms highly unlikely.”
Per Reuters:
TikTok accounts for a small share of ByteDance’s total revenues and daily active users, so the parent would rather have the app shut down in the U.S. in a worst case scenario than sell it to a potential American buyer, they said.
A shutdown would have limited impact on ByteDance’s business while the company would not have to give up its core algorithm, said the sources, who declined to be named as they were not authorised to speak to the media.
X Users Are Suspicious About ByteDance’s Alleged Decision Not To Sell
Users on X, formerly Twitter, are reacting to the latest news in the TikTok saga, and they are very suspicious about ByteDance’s alleged decision to sacrifice their U.S. users to protect the algorithm.
“Just my opinion but if they were innocent and trying to make the Best business move possible they would sell and divest. At $24B annual income the valuation is significant,” one user on X wrote.
Another user added, “i dont understand how no one thinks its suspicious ByteDance is refusing on selling the company. they would get an insane amount of money, please shareholders and would allow Tiktok to stay in the United States. why would they want to keep something that’s doomed to lose money?”
Interesting indeed.
Following the bill’s passing, TikTok’s Chief executive, Shou Chew, vowed to fight, saying in a response video, “Rest assured, we aren’t going anywhere. We are confident, and we will keep fighting for your rights in the courts.”
This decision not to explore any sale says otherwise if we are being honest.
You can see more reactions in the gallery below.
