ByteDance denies rumours it is considering selling TikTok stake to address US pressure
- ByteDance’s advisors are said to be pitching a range of options to protect the value of the business as the app comes under mounting pressure from the US
- However, a ByteDance spokeswoman denied that there have been discussions about any partial or full sale of the app, calling the rumours “meritless”
ByteDance, the Chinese owner of TikTok, has denied talk that it is considering selling a majority stake in its business as one of a range of options to deal with mounting pressure from the US over national security and privacy concerns.
The company’s advisors are pitching everything from an aggressive legal defence and operational separation for TikTok to sale of a majority stake to protect the value of the business, Bloomberg reported on Tuesday, citing people familiar with the matter who said that these talks were preliminary and no formal decision has been made.
The company would prefer to maintain full control of the business if possible, given its soaring popularity and profit potential, and the most likely sale scenario would be for it to sell a majority stake to financial investors, according to one of the sources quoted.
However, in response to queries from the Post, a ByteDance spokeswoman said there have been no discussions about any partial or full sale of TikTok. “These rumours are completely meritless,” she stated.