TikTok's owner ByteDance would rather get the video-sharing app banned in the US than sell it to another company, four sources familiar with the matter told Reuters.
According to anonymous sources, the Chinese-based company would prefer to completely move away from the US once it exhausts all legal options to oppose the looming ban on all of its apps.
(Photo : Joe Raedle/Getty Images)
The report reflects earlier statements from TikTok CEO Shou Zi Chew, asserting that the recently passed legislation would ban TikTok and that "we will keep fighting for your rights in the courts."
@tiktok Response to TikTok Ban Bill ♬ original sound - TikTok
Sources' claims were later corroborated by ByteDance itself through one of its posts in Toutiao, disputing earlier reports that it is looking to sell the app without its algorithm.
ByteDance Expects Limited Financial Impact from US Ban
Even with the nationwide shutdown, ByteDance only expects a limited impact on its business in comparison to the bigger loss it could suffer if it gave up its core algorithm which is also used in its other video-sharing apps.
TikTok currently hosts over 170 million users in the US or just 10% of its total user base. The majority of its users remain in Asia with the Southeast region having the highest record with 276.1 million registered users.
That is not to mention that US users can still access the app through VPN even if the law is in effect.
Also Read: Biden Signs Legislation That Could Ban TikTok, Faces Criticism Among Young Voters
TikTok Prepares for Long Legal Battle to Oppose the Ban
Despite no intentions to sell the app, TikTok and ByteDance are looking to challenge the legislation even if it incurs them big financial losses.
It is worth noting that it is not only TikTok but all ByteDance-owned applications, that would be banned in the US if the law takes effect.
Experts have earlier told CNBC that the legislation, if it ever pushed through justice courts, would not take at least in the next two years.
The statement refers to the expected petition for reviews both sides would initiate for each court ruling.
Related Article: TikTok CEO Prepares for Legal Battle to Contest Looming US Ban
