ByteDance, the parent company of TikTok, is facing the possibility of shutting down the app in the US rather than selling it to an American buyer with its core algorithms included. With concerns over legislation that could ban TikTok in the US, ByteDance would rather take the drastic step of shutting down the app than compromising its core operations. The algorithms that TikTok relies on are integral to ByteDance’s overall business, making a sale of the app with algorithms highly unlikely.
TikTok contributes only a small portion of ByteDance’s total revenues and daily active users, which is why the parent company is prepared to face a shutdown in the US rather than sell to an American buyer. ByteDance’s main concern is holding onto its core algorithm, which is considered a crucial asset. Furthermore, ByteDance’s refusal to sell TikTok’s algorithms indicates the company’s commitment to protecting its intellectual property and maintaining control over its most valuable assets. In the face of potential legislation and pressure to sell, ByteDance is willing to prioritize its strategic interests over short-term financial gains.
