TikTok parent company has a new app – it could be banned, too
When life gives you lemons, launch Lemon8. At least, that’s the playbook ByteDance seems to be following.
The Chinese company – which also owns TikTok – is planning to launch its new venture Lemon8 in May, according to an Insider report. The app features pictures and text and is described as a cross between Instagram and Pinterest, the report adds.
Even as it faces a potential ban in the U.S., ByteDance is continuing to woo creators – targeting many micro influencers with as few as 10,000 followers – and paying them to start posting daily on Lemon8, On The Money confirmed.
But if legislation forcing a divestiture or entirely banning Chinese-owned apps like TikTok passes, Lemon8 would be banned, too. ByteDance’s investment in a new platform – while the fate of TikTok hangs in the balance – has some wondering why the Chinese company is pouring more money into a company during such an uncertain time.
Under the two most prominent pieces of legislation – one proposed by Sen. Marco Rubio (R-Fla.) and another proposed by Sen. Mark Warner (D-Va.) – Lemon8 would be banned as a security concern, sources told On The Money.
But clearly ByteDance is either confident the chaos will end in a stalemate once again or that they stand to make more money by selling off an even more valuable asset, sources add.
“This is a pivotal time for TikTok to defend it’s turf… it’s a critical time to not cede market share to competitors,” Wedbush analyst Dan Ives told On The Money. “No matter what happens, the value of the asset could decline significantly if they stop investing.”
Ives notes short-term investment could fetch Lemon8 a better price if it is eventually sold.
And Bytedance is still investing – they’re even continuing to hire at both TikTok and Lemon8, according to job boards reviewed by On The Money.
Others note even if a ban does happen, it will take sometime to actually go into effect.
“It’s taken 4 years since Trump’s first EO and we aren’t any closer to banning it” one D.C. source familiar with the discussions told The Post. “They have allies on each side of the aisle… So they’re moving ahead as a tech company that wants to build a complete rival to Meta.”
“They’re betting that they’re going to be able to fight this in court if and when this is banned – they’re not going to take this lying down,” Ives adds.
[Written in collaboration with other media outlets with information from the following sources]
