TikTok Mulls Options as Conversations with Potential Buyers Heat Up
While TikTok’s Chinese owners publicly resist pressure from the Biden administration to sell the video app, conversations between TikTok and potential buyers are heating up, according to sources.
TikTok is exploring possible deals it considered when President Trump threatened to ban the app in 2020. The talks orchestrated by the Trump administration had included a proposal for Oracle to partner with Walmart to own a US TikTok subsidiary, taking control of US user data and content moderation.
Calls for Forced Divestiture and Increased Scrutiny
Politicians from across the political spectrum, including the progressive flank of the Democratic Party, are calling for a forced divestiture of TikTok from its Beijing-based parent, ByteDance.
Advocacy group Revolving Door Project sent a letter to top Democratic senators urging a probe of JPMorgan Chase’s ties to TikTok. The letter called out the bank for actively partnering with TikTok to create payment systems for the app.
TikTok CEO Shou Zi Chew will testify in front of the House Energy and Commerce Committee on March 23 about the company’s ties to China.
Government Authority to “Ban or Prohibit” Foreign Technology
Senator Mark Warner said he will introduce a bipartisan bill this week that would grant the government authority to “ban or prohibit” foreign technology like the China-owned app TikTok. The short-form video app is used by more than 100 million Americans, the majority of whom are under 30.
Earlier this month, the House Foreign Affairs Committee approved a bill that gives President Biden the authority to ban foreign technologies, including TikTok. Additionally, the White House ordered government agencies to remove TikTok from all federal devices in the next 30 days.
Tensions with Beijing and ByteDance
Tensions with Beijing flared up last month after the US shot down a Chinese balloon that was reportedly spying on the US. ByteDance and the Biden administration did not respond to requests for comment.
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