TikTok considers splitting from ByteDance if deal with US fails

TikTok is under scrutiny for its Chinese ownership, which US officials are concerned could lead to manipulation or spying by China on Americans - a fear TikTok is working to address. — Reuters

TikTok’s leadership is discussing the possibility of separating from ByteDance Ltd, its Chinese parent company, to help address concerns about national security risks.

A divestiture, which could result in a sale or initial public offering, is considered a last resort, to be pursued only if the company’s existing proposal with national security officials doesn’t get approved, according to people familiar with the matter, who declined to be named discussing non-public information. Even then, the Chinese government would have to agree to such a transaction, the people said.