TikTok is considering separating from ByteDance if it meant staying in the US.

The social network TikTok is considering its separation from ByteDance, its Beijing-based Chinese parent company. This situation is arising at a time when it is being subject to increasing scrutiny by legislators and regulators regarding the company’s relationship with the Government of the Asian country.

To cut the relationship would be through a divestment, which could lead to a sale or an initial public offering, something that is considered a last resort. Besides, It would only be carried out if the proposal that the company has presented to the US national security authorities is not approved.as reported Bloomberg. On the other hand, for the operation to take place, it needs the approval of Beijing.

Europe and the US prohibit their functions from using TikTok

Last February, the European Commission banned its officials from using TikTok on official devices, Following in the footsteps of the United States. The reason this happened was because of misgivings about Chinese technology applications and products among Western authorities due to data security risks.

Last November, the social network admitted that the Chinese headquarters have the possibility of accessing the personal data of all users. This confirmation came after revelations by Forbes that the app was being used to spy on journalists.

According to the latest data, ByteDance has an approximate value of 200,000 million dollars. Estimates point to a valuation of the business of TikTok in the US between 40,000 and 50,000 million dollars. This explains why the separation of its matrix is ​​a possible alternative for the social network.

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