ByteDance’s Path Forward with TikTok: Exploring Alternatives to Divestment
As per an executive directive issued by US President Donald Trump, ByteDance must divest its ownership of TikTok to a US company by April 5, 2025. Although the app remains accessible to users in the United States, it has been removed from major platforms like the App Store and Google Play. Numerous potential buyers have emerged; however, one member of ByteDance’s board is hopeful that a resolution may be found which allows for continued ownership of the app.
A New Perspective on Control and Ownership
Bill Ford, CEO and chairman of General Atlantic—a prominent equity firm—is an optimistic board member at ByteDance. He believes there may still be opportunities for negotiating terms that would allow ByteDance to maintain oversight over TikTok without having to transition control to an American firm. This hopeful outlook comes amid recent discussions between President Trump and Chinese President Xi Jinping.
Navigating Legal Complexities
Ford points out that while some form of “change in control” could be possible regarding TikTok’s operations in the US, ByteDance is actively strategizing ways to continue running its platform stateside without proceeding with a sale. The challenge lies in navigating through legal frameworks established earlier this year which necessitate selling assets to comply with U.S regulations.
Source (paywall)
