Big Law

TikTok Considering Splitting from Parent Company If Proposal With U.S. Fails

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 will 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.

The short-form video app is undergoing a national security review by the Committee on Foreign Investment in the United States (CFIUS) and it agreed last year to implement a number of measures under the plan, nicknamed “Project Texas”, in an attempt to placate hostile lawmakers.

Read the source article at news.yahoo.com

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