By Mark Kawalya
ByteDance, the Chinese company that owns TikTok, has firmly stated its commitment to retaining ownership of the popular video app. This is despite the United States enacting a law forcing the company to sell its arm in the country or be banned. In response to speculations regarding a potential divestiture of TikTok’s US operations, ByteDance swiftly refuted such claims. The company declared, via its official Toutiao account, that it has no intentions whatsoever to sell TikTok.
The enactment of a law by US President Joe Biden, compelling ByteDance to either offload TikTok or face a ban in America, spurred concerns regarding Beijing’s influence over private enterprises. ByteDance’s grip on user data and the extent of control exerted by the Chinese Communist Party have become points of scrutiny for Western nations. However, TikTok has vehemently denied assertions linking it to governmental control, asserting its autonomy and dedication to safeguarding user rights.
In an effort to dispel circulating rumors, ByteDance emphasized that reports suggesting a potential sale of TikTok were not true. This assertion was reinforced with a visual aid, featuring the phrase “false rumor” superimposed over an article discussing the alleged sale. TikTok’s leadership echoed this sentiment, with CEO Shou Zi Chew asserting the platform’s resilience and commitment to upholding constitutional principles.
Despite the prevailing uncertainties, TikTok’s ownership structure remains transparent. ByteDance’s founder retains a 20% stake in the company, with institutional investors, including prominent US firms such as Carlyle Group and General Atlantic, holding the majority of shares. Additionally, a significant portion of ownership is distributed among TikTok’s global workforce. Notably, three out of ByteDance’s five board members are American. This further underscores the company’s ties to the United States.
While concerns persist regarding the potential ramifications of a TikTok ban, the immediate threat appears subdued. The newly enacted legislation affords ByteDance a nine-month window to facilitate a sale. There is also an additional three-month grace period before any ban can be enforced. Consequently, any significant developments regarding TikTok’s ownership structure are unlikely to materialize until 2025. This will follow the conclusion of the 2024 presidential election.
