TikTok considering US demerger to address political issues 2023

According to Bloomberg, the senior executives in charge of TikTok’s operations in the United States are weighing the pros and cons of severing ties with ByteDance, the parent company, in the wake of growing worries over the security of users’ data and the business’s ties to the Chinese government.

This approach would need to be approved by Beijing, and if it were successful, it may result in TikTok being sold or going public through an initial public offering.

According to the financial news organization, citing people that are familiar with the discussions, it was stated that severing ties with ByteDance is considered a last choice.

Concerns about TikTok’s safety have prompted the Committee on Foreign Investment in the United States to conduct an investigation into the platform.

According to reports, the assessment did not address the concerns raised by regulators about ByteDance’s connections to the Chinese Communist Party (CCP).

There are worries over the prospect of surveillance by the Chinese government, which led to the signing of a measure in December by US President Joseph Biden that banned the use of TikTok on the majority of devices owned by the federal government.

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