TikTok would be ready to part with ByteDance, its parent company, if the agreement with the US authorities does not arrive. The company could spin off its American business – which it looks like it might hold between 40 and 50 billion dollars.
TikTok ready to separate from ByteDance to stay in the USA
According to unnamed sources, the leaders of TikTok would be discussing the possibility of separating from their Chinese parent company, ByteDance Ltd. This decision should definitively resolve US national security concerns.
This move would only be a last resort. Only to be approved if TikTok’s current proposal with national security officials fails to pass. Furthermore, the Chinese government should accept such a transaction: the harsh climate with the USA is seen, it is by no means obvious.
Bloomberg analysts (reporting the news) Mandeep Singh e Damian Reimertzthey estimate that the TikTok company may be worth between 40 and 50 billion dollars (while ByteDance is listed at 220 billion).
TikTok remains under scrutiny over its Chinese ownership, which worries US officials about the possibility of China’s manipulation or spying on Americans.
The company is trying to address these concerns with the Project Texaswhich he plans to use for US data Oracle Corp US servers only. In addition, he wants a three-person government-approved supervisory board.
But it seems that for the US it is not enough. Although Brooke Oberwettera spokesperson for TikTok, explains: “Neither the ban on TikTok nor the divestment of TikTok from ByteDance address national security concerns over data transfers. Under Project Texas, TikTok data for our US users would be held to a standard of security significantly higher than any comparable U.S. company.”
Project Texas remains the priority. But TikTok also prepares more extreme solutions.