TikTok owner prefers US shutdown than sell platform if legal options fail: report

In the US, President Joe Biden signed a law that would ban the popular short video app used by 170 million Americans.

File photo: Social media giant TikTok

TikTok battle continues

According to a report by Reuters, its sources said that ByteDance would opt to shut down TikTok than sell it if all legal options to fight the legislation banning the platform from app stores in the US have been exhausted.

The sources noted that the algorithms TikTok relies on for its operations are core to ByteDance's overall operations, which would make a sale of the app with algorithms highly unlikely.

They said that TikTok only contributes a small share to ByteDance's total revenues and daily active users, so the parent would rather have the app shut down. Moreover, closing down would have a limited impact on the parent company while not having to give up its core algorithm, they added

ByteDance has said in a statement that it had no plan to sell TikTok in response to an article by The Information saying the Chinese company is exploring scenarios for selling TikTok's US business without the algorithm that recommends videos to TikTok users.

On Wednesday, TikTok CEO Shou Zi Chew said he is confident the company will win the legal challenge block legislation signed into law by President Joe Biden. The said measure, which was made amid US lawmakers’ security concerns, would ban the short video app used by 170 million Americans.

The signing sets a Jan. 19 deadline for a sale which could be extended by three months if Biden sees ByteDance is making progress.

ByteDance mostly earns in China from its other apps such as Douyin, the Chinese equivalent of TikTok, separate sources have said. The US accounted for about 25 percent of TikTok's overall revenues last year, another source said.

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Via: Reuters