14 DAY TRIAL // TikTok is one of this year’s Internet sensations, but being owned by a Chinese company has apparently become its Achilles’ heel, with American authorities flagging the app as a potential security threat.
Earlier this week, a report from Bloomberg revealed that the security concerns over TikTok have forced parent company ByteDance to look into several options moving forward, including a potential sale of the app.
But in an internal memo to employees, ByteDance says rumors of a TikTok sale are completely false, emphasizing that the company has no intention on giving up on the app despite security concerns expressed by American companies.
“From time to time you may read stories in the media that are not true. Today there is an inaccurate report claiming that ByteDance has considered selling part or all of TikTok,” the company said in the internal memo obtained by Reuters.
“We went on the record saying it was not true, but they decided to publish it anyway. I want to assure you that we have had no discussions with potential buyers of TikTok, nor do we have any intention to.”
Nearly 2 billion downloads so far
According to the Bloomberg story, the other options for ByteDance were “an aggressive legal defense and operational separation for TikTok,” but the discussions have reportedly been kept private because no decision has been made. However, selling half of TikTok could raise some $10 billion.
Additionally, the report reveals that ByteDance still prefers to “maintain full control of the business.”
“These rumors are completely meritless,” a ByteDance spokesperson told Bloomberg.
November data provided by SensorTower revealed that TikTok surpassed 1.5 billion downloads on the Apple App Store and Google Play Store after recording 614 million downloads in 2019 alone. It was the third most popular app in the world after WhatsApp and Facebook Messenger, but above Facebook and Instagram.