TikTok’s parent company has a new app – it could get banned too
When life gives you lemons, launch Lemon8. At the very least that appears to be the manual that ByteDance follows.
The Chinese company – which also owns TikTok – plans to launch its new enterprise Lemon8 in May, in accordance with an Insider report. The app features photos and text and is described as a cross between Instagram and Pinterest, the report adds.
Even within the face of a potential U.S. ban, ByteDance continues to court creators – targeting multiple micro influencers with as few as 10,000 followers – and paying them to post each day on Lemon8, On The Money confirmed.
But when laws forcing divestiture or outright banning Chinese apps like TikTok are passed, Lemon8 may even be banned. ByteDance’s investment in a new platform – while the fate of TikTok hangs within the balance – has some wondering why the Chinese company is pouring extra money into the company at such an uncertain time.
Under two major pieces of laws – one proposed by Senator Marco Rubio (R-Fla.) and one other proposed by Senator Mark Warner (D-Va.) – Lemon8 shall be banned for security reasons, On The Money sources say.
But apparently ByteDance is either confident that the chaos will end in stalemate again, or that they will make more cash by selling a good more invaluable asset, the sources add.
“It’s a critical time for TikTok to defend its ground… it’s a critical time not to provide away market share to competitors,” Wedbush analyst Dan Ives told On The Money. “Irrespective of what happens, the worth of assets could drop significantly in the event that they stop investing.”
Ives notes that a short-term investment could fetch Lemon8 a higher price if eventually sold.
And Bytedance remains to be investing – it’s still hiring even at TikTok and Lemon8, in accordance with job boards reviewed by On The Money.
Others note that even when the ban does come, it is going to be a while before it goes into effect.
“It has been 4 years for the reason that first Trump EO and we’re no closer to banning it,” one DC source aware of the discussions told The Post. “They’ve allies on either side of the aisle… So that they’re moving forward as a tech company trying to construct a complete rival to Meta.”
“They’re betting they’ll have the option to fight it in court if and when it gets banned – they are not going to lie about it,” adds Ives.