ByteDance, the parent company of TikTok, is planning to sell the world-famous video creation app with an algorithm-free version. Without an algorithm, any company that buys TikTok operations in the US will have a hard time, according to experts. If ByteDance sells the missing version of TikTok, new owners of the app will have to develop alternative source code on their own.
With this new rule, ByteDance will need a license from Chinese leaders to sell TikTok’s algorithm. Mr Trump’s executive order prohibiting US companies from doing business with ByteDance will take effect on September 20.
For months, US officials were concerned that data on its users was collected and shared by TikTok with the Chinese government. However, the Chinese company repeatedly denied the allegations. In the US, this popular video creation app is making a splash with more than 100 million active users every day.
Two technology giants Microsoft and Oracle are the brightest names for the new boss position of TikTok. However, there have not been any reports that confirmed a billion-dollar deal with TikTok occurred. ByteDance is in talks with several parties to resell its US operations. The move comes after President Donald Trump banned TikTok, unless the short video service is sold to an American company.
After TikTok’s operations in the US were overlooked by government security, Donald Trump set a deadline for ByteDance to transfer ownership. The lawsuit also accused Donald Trump of acting beyond his authority, giving no concrete evidence to prove TikTok threatens national security.
TikTok claims they store US user data in the US with a backup in Singapore. At the same time, he said he did not transfer data to the Chinese government even when requested. Microsoft, Walmart and other companies are negotiating to buy TikTok operations in the US, but details of the deal have yet to be announced.