Why ByteDance Could Afford to Shut Down TikTok’s U.S. Business

How painful would it be for ByteDance to shut down TikTok in the U.S. altogether? Such a question may be moot if you only listened to President Donald Trump, who has frequently weighed in on the likelihood of a deal to sell TikTok’s U.S. operations—perhaps to Oracle, maybe to Elon Musk, or even to the U.S. government itself! 

But as we’ve reported here and as the Washington Post reminded us this week, there’s no guarantee the Chinese government will ever approve a TikTok sale, which could give its arch geopolitical rival a window into the app’s successful technology. ByteDance may also resist any TikTok sale to a potential competitor.

The nuclear option, shutting down TikTok in the U.S., wouldn’t be the best outcome for ByteDance. But if it needs to, ByteDance can afford to lose the U.S. market and focus on opportunities in the rest of the world, some ByteDance investors say.