ByteDance, the Chinese parent company of TikTok, has stated that it has no intentions of selling the business to a US division or divesting from the platform in any way, despite recent developments in the United States.

This announcement follows the passing of a law in the US that would require ByteDance to sell TikTok or face a ban in the country.

In a post on its official account on Toutiao, a social media platform owned by ByteDance, the company affirmed, “ByteDance doesn’t have any plans to sell TikTok.”

Earlier this week, TikTok declared its intent to challenge the law in court, labelling it as “unconstitutional.”

ByteDance’s statement comes in the wake of media reports suggesting that the company was considering options to sell TikTok without its underlying algorithm, which is integral to its functionality.

According to a Reuters report, sources close to ByteDance said that the algorithms powering TikTok are crucial to ByteDance’s operations. This makes the sale of the app with its algorithms highly unlikely, the sources mentioned.

Despite TikTok contributing only a small portion to ByteDance’s revenues and user base, the parent company is hesitant to sell it to an American buyer and may pull out of the US.

Shutting down TikTok in the US could have minimal impact on ByteDance’s overall business while allowing the company to retain control over its core algorithm, the sources added.

TikTok’s CEO remains optimistic about overcoming legal challenges against the proposed ban, which stems from concerns over data security and potential surveillance by China. President Biden’s signing of the legislation sets a deadline for TikTok’s sale, though extensions are possible based on ByteDance’s progress.

ByteDance’s financial details, including those of TikTok, are not publicly disclosed. However, it is known that the US market accounted for a significant portion of TikTok’s revenues in recent years.

The algorithms powering TikTok are closely integrated with ByteDance’s other domestic apps, making it challenging to separate them. Additionally, Chinese regulations regarding technology exports could complicate any attempts to divest TikTok’s assets.

Despite interest from potential buyers like former US Treasury Secretary Steven Mnuchin, ByteDance may struggle to find investors willing to acquire TikTok’s US operations without its core algorithms.

The future of TikTok in the US remains uncertain as ByteDance weighs its options amidst regulatory pressures and national security concerns.

(With inputs from agencies)