Comment by henrikschroder
12 days ago
TikTok is outcompeting its US rivals Instagram Reels and YouTube Shorts because their algorithm for choosing which videos to put in front of users is simply superior. Divesting means that they would need to sell that algorithm as well, which is pretty obviously worth a lot more than their US market, which is why they're making this decision.
lol, no it’s not. They’re making this decision because they’re ultimately controlled by the CCP which is not as susceptible to market forces.
It could be a bit of both. The popularity of TikTok indicates that their algorithm for picking relevant videos is pretty damn good. So they may consider that the US market is worth sacrificing for their sovereignty.