Bloomberg reported, citing its sources, that Tik Tok’s management is considering a spinoff from Chinese parent company ByteDance to deal with problems with the US.
Sources indicate that this will be an “emergency measure” in case Tik Tok cannot convince the US that it does not pose a threat to US national security.
According to Bloomberg, the US Department of Justice is not convinced by Tik Tok’s current dispute resolution proposals.
It is noteworthy that the separation of Tik Tok from the parent company must be approved by the Chinese authorities.
The US administration has supported a bill submitted to Congress that would allow the president to ban foreign social media, including the Chinese app Tik Tok, which the US authorities consider a “threat to national security.”
Source: Bloomberg.
