Media – TikTok considers forking from ByteDance

According to a media report, the Chinese video platform TikTok is considering the possibility of a spin-off from the parent company ByteDance in order to allay US security concerns. The divestiture is only intended as a last resort should the company’s proposals fail to gain approval from US authorities, Bloomberg reported on Tuesday, citing people familiar with the matter. The spin-off could be realized through a sale or an IPO. Neither TikTok nor ByteDance initially gave a statement.

Because of the proximity of TikTok and the mother ByteDance to the Chinese government, security authorities fear that the People’s Republic will tap personal user data or misuse it to manipulate public opinion. TikTok and the Chinese government have denied the allegations. TikTok is threatened with a ban in the USA. The platform is currently being tested. The company promised a number of measures to improve security.

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