According to sources close to the company, ByteDance, the Chinese firm that owns TikTok, is contemplating a surprising outcome for the popular video-sharing app in the US. If ongoing legal efforts to prevent a ban on the platform in US app stores fail, ByteDance would reportedly choose to shut down TikTok entirely rather than sell it to a US buyer.
This preference stems from two key factors. Firstly, the algorithms that power TikTok's recommendation system, crucial to its success, are considered integral to ByteDance's broader operations. Selling the app without its core algorithm would significantly diminish its value to a potential US buyer. Sources suggest that ByteDance is unwilling to cede control over this technology.
Secondly, reports indicate that TikTok, though boasting a massive US user base, contributes relatively little to ByteDance's overall revenue. This financial reality makes a complete shutdown in the US a less severe outcome for the company compared to relinquishing its algorithmic technology.
The potential shutdown of TikTok in the US would mark a significant development in the ongoing saga over the app's security and data privacy. US lawmakers have raised concerns about the possibility of user data being accessed by the Chinese government, leading to calls for a ban or a forced sale to a US entity. ByteDance has consistently denied these accusations.
The news of ByteDance's preference for shutdown is likely to intensify discussions about the future of TikTok in the US. It remains to be seen whether the company's legal challenges will be successful, or if a potential compromise can be reached that satisfies both US security concerns and ByteDance's desire to retain control over its technology.