What a Monday it is. Soon after the news broke that Microsoft is out of the competition when it comes to bidding for TikTok’s U.S operations, and soon after rumors started circulating that Oracle is the new winner, China’s state-backed broadcaster CGTN reported that ByteDance won’t sell TikTok’s U.S operations to either of these two companies.
Currently, ByteDance is the world’s most valuable start-up, which is also credited with pioneering algorithmic content for shorter video formats. This source code is the key behind TikTok’s intelligent video suggestion, and according to CGTN, ByteDance won’t give that source code to any U.S company. Also, sources have told the South China Morning Post that the parent company of TikTok has decided not to sell or transfer the source code behind this ultra-popular video platform.
However, ByteDance has denied commenting on this matter.
On the other hand, time is running out for TikTok. During its early stages of negotiations with Washington, Beijing was absent surprisingly. Then with each passing day, things changed and Beijing interfered eventually. Earlier the U.S. government gave TikTok a timeframe of 45 days from 6th August to sell its U.S operations to any local company or TikTok will have to shut its operations in the U.S. As per the reports, ByteDance’s U.S assets are valued worth $50 billion.
Since this step, the Chinese government revised its already existing export rules, so that it could block the sale of ByteDance’s algorithms and now there’s the report from CGTN that completely refutes the rumors that Oracle has secured the deal.
The video-sharing platform’s rise to fame is very closely related to its use of algorithms in order to recommend videos to its users. As Machine Learning works behind the scene, there’s no need for human intervention or creation, the more content a user consumes, that much better the apps get while predicting his/her interests. This process breaks the barrier of language, making TikTok the first Chinese app to become immensely popular in the west.