(Reuters) – China’s TikTok is considering separating from parent ByteDance to help address U.S. concerns about national security risks, Bloomberg News reported on Tuesday, citing people familiar with the matter. A divestiture, which could result in a sale or initial public offering, is considered a last resort, and to be pursued only if the company’s […]
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TikTok mulls splitting from ByteDance if proposal with U.S. fails – Bloomberg News
(Reuters) – China’s TikTok is considering separating from parent ByteDance to help address U.S. concerns about national security risks, Bloomberg News reported on Tuesday, citing people familiar with the matter.
A divestiture, which could result in a sale or initial public offering, is considered a last resort, and to be pursued only if the company’s existing proposal with U.S. national security officials does not get approved, Bloomberg reported.
TikTok and ByteDance did not immediately respond to Reuters requests for comment.
TikTok is undergoing a national security review by the Committee on Foreign Investment in the United States and it agreed last year to implement a number of measures under the plan, nicknamed “Project Texas”, in an attempt to placate hostile lawmakers.
The app has come under increasing fire over fears that user data could end up in the hands of the Chinese government, undermining Western security interests. TikTok Chief Executive Shou Zi Chew is due to appear before the U.S. Congress on March 23.
(Reporting by Eva Mathews in Bengaluru; Editing by Devika Syamnath)