TikTok has discussed cutting ties with Chinese parent ByteDance

March 15, 2023 11:35 pm

The leadership of TikTok is debating the possibility of cutting ties with ByteDance Ltd, its Chinese parent company, in order to assist allay worries about potential threats to national security.

According to a Bloomberg report citing source familiar with the situation, a divestment, which might lead to a sale or initial public offering, is only explored as a last choice in the negotiation that the company's current deal with national security officials is rejected.

TikTok agreed last year to put in place a variety of steps to address the security worries of US officials. TikTok is currently the subject of a national security evaluation by the Committee on Foreign Investment in the United States.

A three-person government-approved monitoring board will also be appointed as part of the plan called Project Texas strategy, which also entails bringing in American tech giant Oracle Corp. to hold US customer data and review its software.

CFIUS, which is a panel of multiple agencies involved in national security, and TikTok have been negotiating for more than two years on data security requirements.

TikTok said that it had invested more than $1.5 billion in thorough data security measures and denies claims of espionage.

According to a statement made by TikTok on Wednesday, protecting U.S. user data and systems transparently in the U.S. with effective third-party monitoring, vetting, and verification is the best method to allay concerns about national security.