One of the most grown social networks in recent years may have to make drastic changes to your organization. TikTok is considering separating from ByteDance, the Chinese company responsible for the app.
The separation would be for a disinvestment. This can occur with a sale to another company or a public offering of shares. That way, TikTok would get out of ByteDance’s hands.
Although not ruled out, this possibility would be adopted only as a last resort.
TikTok’s U.S. arm is valued at $40 billion to $50 billion, according to Bloomberg.
TikTok has been under scrutiny by U.S. authorities since 2020, when it was nearly banned in the country and sold to Oracle and Walmart.
TikTok is accused of espionage
There is a fear that the app will collect user data and share it with the Chinese government. So he could serve for espionage. TikTok has 100 million users in the US.
In 2022, ByteDance admitted that its employees in China can access data from American users. The company, however, argues that they are subject to a number of u.S. team controls and protocols.
The case doesn’t seem to have been isolated. Journalists who have made negative stories about TikTok have had their app information improperly accessed.
TikTok has agreed to implement a series of security measures to allay the concerns of U.S. authorities, called the “Texas project.”
One is to store country user data on Oracle servers. The technology giant would also review its software and appoint a three-man oversight board approved by the government.
All these measures were taken during an investigation by the U.S. Foreign Investment Committee (Cfius). The lawsuit had no further news after the “Texas project,” which left TikTok uncertain about its future.
It’s not just Cfius that’s on TikTok’s tail. Senators introduced a bill that would give the Commerce Department powers to restrict and even ban technologies that pose risks to national security, including the social network of short videos. The White House supports the proposal.