Sources who spoke to Bloomberg said that the company is considering selling off a majority stake of TikTok to financial investors, in order to protect the business. By selling off a part of the company, leadership could raise money before a potential fall in value caused by legal issues in the US.
Other solutions rumored to have been considered include an "aggressive legal defense," which may be the company's preference as ByteDance reportedly "would prefer to maintain full control of the business." It may be possible for the company to argue that, unlike a similar case with gay dating app Grindr, the type of information posted on TikTok is not sensitive data.
ByteDance has publicly denied the rumors about a potential sale of the business, according to the South China Morning Post. A company representative said the rumors were "completely meritless."
However, trust in ByteDance is low in the US, with accusations that the app censors criticism of China, especially about the Chines government's oppression of Uighur Muslims in the country.