01:37 PM EDT, 04/25/2024 (MT Newswires) -- (Updates with in the second, third, and fourth paragraphs and a request for comment in the sixth paragraph.)

ByteDance would rather shut down TikTok than sell it if the Chinese firm's legal options to fight legislation to ban the platform from US app stores fail, Reuters reported Thursday, citing four sources.

A sale of the app with algorithms is highly unlikely as the algorithms that TikTok depends on for its operations are considered core to the overall operations of its owner, ByteDance, the report quoted the sources as saying.

In a worst-case scenario, ByteDance would prefer shutting down TikTok in the US rather than sell it to a potential American buyer as TikTok accounts for a small portion of the total revenues and daily active users of ByteDance, the report said, citing the sources.

On Wednesday, US President Joe Biden signed legislation to block users in the US from accessing TikTok unless its parent company agrees to sell in the coming months.

ByteDance declined to comment to Reuters.

The company didn't immediately respond to a request for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)