TikTok, the well-known video-sharing platform, is apparently contemplating breaking away from its parent company ByteDance. According to Bloomberg, the potential separation is prompted by concerns raised by the US regarding the app and its purported national security threats.
According to insiders, the news outlet states that a “divestment” is seen as a final option and will be pursued only if the proposal TikTok has submitted to US national security officials is not accepted. A divestment could result in either a sale or an initial public offering (IPO).
The mobile app featuring short-form videos is presently under examination and is undergoing a review pertaining to national security by the Committee on Foreign Investment in the United States (CFIUS).
To appease unfriendly legislators, TikTok agreed to implement several plans dubbed “Project Texas” last year.
Despite TikTok’s efforts, the Committee on Foreign Investment in the United States (CFIUS) has left the app uncertain about its fate in America. Reportedly, CFIUS members have been hesitant to approve TikTok’s proposal.
According to reports, the agency has delayed its decision-making process, leaving TikTok in a difficult position, uncertain about whether its efforts are adequate to guarantee the app’s continued operations in the United States.
CFIUS and TikTok have been engaged in negotiations since then, with the app asserting that it has already expended over $1.5 billion on stringent data security measures.
In 2020, the national security agency CFIUS had advised ByteDance to divest TikTok. The app has been subject to mounting criticism due to concerns that user data could fall into the hands of the Chinese government, potentially jeopardizing Western security interests. Nevertheless, TikTok refutes the accusations of espionage.
In 2020, the national security agency CFIUS had advised ByteDance to divest TikTok. The app has been subject to mounting criticism due to concerns that user data could fall into the hands of the Chinese government, potentially jeopardizing Western security interests. Nevertheless, TikTok refutes the accusations of espionage.