TikTok is considering a split from ByteDance

The board of popular video app TikTok is considering a split from Chinese parent company ByteDance, according to sources inside the company, according to Bloomberg News. TikTok sees the move as a way to ease U.S. concerns about national security threats.

TikTok is subject to a national security review by the Committee on Foreign Investment in the United States (Cfius). The group is looking at several steps TikTok wants to take to address concerns within the US about national security. The plan, known as Project Texas, involves enlisting US technology giant Oracle to manage US user data and appointing a US-approved board of trustees.

If Cfius doesn’t agree to the Texas plan, TikTok will consider breaking away from ByteDance. Such a move could result in a sale or IPO. According to Bloomberg, the Chinese government would have to agree to such a transaction.

TikTok CEO Shou Chew has been asked to testify before a delegation next week about the app’s privacy policy regarding user data. The company’s relationship with the Chinese Communist Party will also be discussed.

Abu Dhabi-based artificial intelligence firm G42 has bought a $100 million (about 93 million euros) stake in ByteDance, according to Bloomberg News. TikTok’s unlisted Chinese owner is valued at $220 billion.

Sheikh Tahnoon bin Zayed Al Nahyan, who is also the National Security Adviser of the UAE, oversees the G42. G42 Investment Fund bought shares in recent months from existing investors through 42XFund.

ByteDance’s $220 billion valuation is significantly lower than the $300 billion valuation given to the company last year. By 2021, the company is valued at $300 billion to $400 billion.