Bloomberg reports that the U.S. president plans to commission China’s ByteDance to sell TikTok in the U.S.
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US President Donald Trump plans to mandate the United States Foreign Investment Council (CFIUS) to manage China’s ByteDance Ltd. forcing him to give up his TikTok property, reports Bloomberg. The announcement could be made on Friday and follows a CFIUS security review by TikTok and its parent company last fall.
ByteDance bought Musical.ly Inc., a lip sync app, for one billion in 2017 and merged it with Tick tack to create the phenomenon of social networks that has become worldwide. However, some politicians and some members of the public have encountered issues with the company’s privacy practices and ByteDance’s alleged relationship with the Chinese Communist Party.
China ByteDance Ltd. is the owner of TikTok / Image: Depositphotos.com
according to Bloomberg“TikTok was looking for ways to distance itself from its Chinese property to assure the public that there is no data stored on servers in China and that the application works independently. ByteDance even appointed a former CEO of Walt Disney Co., Kevin Mayer to lead his operations in the United States. “
This process has a precedent: in early 2020, Beijing Kunlun Tech sold the LGBTQ dating app Grindr for more than $ 600 million after CFIUS raised national security concerns in 2019.