TikTok Mulls Splitting From ByteDance If Proposal With US 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. Reuters reports: 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. 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. CFIUS has stalled in its process, leaving TikTok unsure of whether its plans will be sufficient to continue operating in the country, according to the report. Members of CFIUS from the Justice Department have been unwilling to accept TikTok's proposal, it added. CFIUS, a powerful national security body, had in 2020 unanimously recommended that ByteDance divest TikTok because of fears that user data could be passed on to China's government.

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