The Chinese video platform TikTok according to a media report, is considering the possibility of a spin-off from the parent company ByteDanceto security concerns of USA to disperse.
The demerger is only intended as a last resort, should the company’s proposals not be approved by US authorities, the reports Agentur Bloomberg on Tuesday, citing people familiar with the matter.
Proximity to the Chinese government
The spin-off could have a sale or initial public offering will be realized. Neither TikTok nor ByteDance initially gave a statement.
Because of the proximity of TikTok and the mother ByteDance to Chinese government security authorities fear that the People’s Republic of personal user data picks up or misused to manipulate public opinion.
TikTok and the Chinese government have denied the allegations. It’s imminent ban by TikTok in the US. The platform is currently being tested. The company promised a number of measures to improve security.
