Results for: ByteDance

The US government is determined to ban TikTok unless ByteDance, the Chinese parent company, sells its stake in the app. However, ByteDance is vowing to challenge the ban in court, setting the stage for a legal battle that could redefine the business landscape for Chinese companies in the US. The proposed bill also targets apps from countries considered foreign adversaries, potentially affecting other Chinese companies like Tencent and Temu. ByteDance, despite its growing presence in the US with 170 million users, remains firm in its stance against selling TikTok, citing its significant revenue, established e-commerce business, and planned international expansion. The outcome of this legal battle will shape the future of TikTok’s operations in the US and test the limits of US pressure on Chinese tech giants.

The United States government has been attempting to ban TikTok due to national security concerns. The House of Representatives passed a bill requiring ByteDance to sell TikTok within six months or face a ban. A second bill with a nine-month deadline is pending in the Senate. TikTok plans to challenge the legislation in court, arguing it violates First Amendment rights.

As the US government pushes for Chinese owner ByteDance to divest TikTok’s US operations, analysts identify Microsoft and Oracle as likely buyers. The updated House bill provides ByteDance with a one-year divestment period. Wedbush analysts suggest that private equity firms and consortiums, including those backed by former Treasury Secretary Steven Mnuchin, may also express interest in acquiring the asset. However, Wedbush emphasizes the uncertainty surrounding the potential sale due to the absence of TikTok’s algorithms and possible legal challenges from ByteDance.