TikTok parent ByteDance Ltd. is looking into a new structure for its U.S. operations following the shelving of its deal with Oracle Corp. and other companies.
Report: ByteDance Walks Out of Oracle Deal
A week after The Wall Street Journal reported that the U.S. government had "indefinitely" halted the forced sale of TikTok to Oracle and other companies, the South China Morning Post reported that ByteDance had decided to shelve the deal.
A source said ByteDance had lost its "raison d'être" for selling its TikTok U.S. operations to the group of companies led by Oracle after former President Donald Trump lost the election in November.
"The deal was mainly designed to entertain demands from the Trump administration," who spoke on condition of anonymity said.
ByteDance is looking for a new structure in its U.S. operations that should work well with the new administration under President Joe Biden.
It is expected that ByteDance will continue communicating with the U.S. government so both sides can come to a compromise that will allow TikTok to operate in the country while ensuring that it retains core algorithms even if it decides to sell its U.S. operations in the future.
Weekend Report: ByteDance to Sell India Operations
News of the latest developments in ByteDance's deal with Oracle came one day after a report revealed that the company is looking into the potential sale of its India operations to Glance.
According to Bloomberg, sources with knowledge of the matter said the discussions for a potential sale to rival company Glance was reportedly initiated by SoftBank Group Corp.
ByteDance's TikTok is in direct competition with Glance's short video-sharing app, Roposo.
It is worth noting that TikTok was banned in India as tensions ensued between China and India owing to a disputed border area in the Himalayan region. Relations between the two countries have soured for the past few months.
Last month, ByteDance announced that it will shutter India operations due to the uncertainties that come with its return to service in the country. Thousands of jobs are on the line.
What Could Happen Next?
Earlier in January, local India media reported that TikTok and 58 other apps have been permanently banned in the country.
As of June 2020, TikTok has accumulated around 167 million India users, while in the U.S., the app is estimated to have about 100 million users.
While hopes are starting to vanish for ByteDance's India operations, some industry analysts believe that there could still be hope for its U.S. operations as the Biden team is reviewing the previous administration's claims about TikTok.