TikTok, a well-known video-sharing app, apparently contemplates severing ties with parent company ByteDance. According to Bloomberg, the United States’ concerns about the app and the purported national hazards it poses are the likely cause of this separation.
According to the journal, which relied on sources with knowledge of the situation, a “divestiture” is only pursued as a last choice if the company’s current deal with US national security officials is rejected. The result of a divestiture could be a sale or an IPO (IPO).
The short video app is now under investigation. The Committee on Foreign Investment in the United States is examining its national security (CFIUS).
In an effort to appease uncooperative lawmakers, TikTok even consented to the implementation of many ideas known as “Project Texas” last year.
TikTok is unclear about its future in the US
Yet, TikTok is unclear about its future in the US as a result of CFIUS. According to reports, CFIUS members rejected TikTok’s request.
According to reports, the agency’s procedure has halted, placing the app in a precarious position and uncertain as to whether its efforts would be sufficient to assure the continuance of TikTok’s operations in the US.
TikTok has always denied the accusations of snooping
Since then, conversations between CFIUS and TikTok have been ongoing, with the app asserting that more than $1.5 billion has already been spent on stringent data security measures.
National security body CFIUS suggested that ByteDance divest TikTok back in 2020. Because of worries that the app could undermine Western security interests by giving the Chinese government access to user data, the app has come under growing fire. Nonetheless, TikTok denies the accusations of snooping.