Exclusive: ByteDance asks TikTok to draw up U.S. shutdown contingencies - sources
- China’s ByteDance told engineers of its popular short-video app TikTok this week to make contingencies should it need to shut down its U.S. operations, even as it works toward divesting them, people familiar with the matter said on Thursday.
Trump issued an executive order on Aug. 6 that would ban transactions with TikTok and its Chinese parent in 45 days. While TikTok has filed a lawsuit challenging the order, it is preparing for the possibility that it will have to shut down if it has not reached a deal with an acquirer by mid-September, the sources said. It hopes that any shutdown would be temporary, the sources added.
ByteDance is also making separate plans for TikTok U.S. employees and vendors to be compensated in the event of a shutdown, one of the sources added. TikTok has already implemented a hiring freeze in the U.S. for most open positions because of the uncertainty, bringing in only 5% of the staff it planned to recruit, according to the source.
ByteDance has been in talks to sell TikTok’s North American, Australian and New Zealand operations, which could be worth $25 billion to $30 billion, since the beginning of this month.
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