AGS NEWS – ByteDance, the parent company of TikTok, is considering shutting down the app in the United States rather than selling it, as reported by Reuters based on information from four sources.

This decision follows legal challenges faced by ByteDance due to legislation aimed at banning TikTok from US app stores.

The sources familiar with the matter suggest that it’s unlikely for TikTok to be sold, especially with its crucial algorithms, which are integral to ByteDance’s operations.

President Joe Biden recently signed a bill into law seeking to ban the app in the US, previously approved by Congress, giving ByteDance nine months to sell the app or face a ban.

The concern behind the law stems from worries that TikTok might share user data with the Chinese government, a claim consistently denied by the company.

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Despite TikTok contributing a small portion of ByteDance’s income and daily users, the parent company reportedly prefers blocking the app in the US over selling it to an American buyer.

ByteDance declined to comment on the matter when approached by Reuters, but a statement posted on Toutiao, a media platform owned by ByteDance, clarified that there are no plans to sell TikTok.

However, there have been reports suggesting ByteDance is considering options for selling TikTok’s US business without its algorithm, which recommends videos to users.

TikTok’s CEO expressed confidence in overcoming legal challenges, despite the legislation signed by Biden, and the app currently boasts 170 million American users. Last year, the US contributed approximately 25% of TikTok’s total revenues.

The algorithm behind TikTok, which powers its operations and determines content displayed on the “For You” page, is considered a crucial asset for ByteDance.

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ByteDance is reportedly unwilling to part with this algorithm in any potential sale due to its significance to the company’s business.

Critics in the US have raised concerns about the algorithm’s implications for national security, alleging it could enable spying by third parties in China.