Destroying the company rather than selling it for billions of dollars is a crazy stance for a supposedly independent business, and should be taken with a huge grain of salt. There is a good chance they are bluffing, which would be a reasonable strategy as they try to push back on the bill.
The only reason they would go through with burning the company down is for geopolitical reasons, which would show how beholden Tiktok is to the CCP and confirm one of the arguments for passing the bill in the first place.
Brand damage from the new owners + having reveal algorithm could easily be worth far more for TikTok than they'd get from selling. There's also the question of how a ban would even be implemented. For instance India "banned" TikTok but you can still use it if it's installed. And you can get the APK installer from their site for Android users, and Apple users can just change their region to download it normally.
Whatever the means chosen to ban it is, it'll probably face even more legal challenges.
China won't care that they give up a few billion in a one time sale if it creates a rift between a majority (or huge minority) of regular users and the US government. They'd probably consider it a bargain. Additionally, they have a very good chance of winning via our court system. This is not the first attempt at shutting down TikTok in the US using these tactics.
At the end of the day, China - or any government for that matter - won't sacrifice their alleged propaganda and cyber-warfare platform for a few hundred million in recurring revenue.
1. TikTok is actually not Bytedance's most profitable product.
2. If you sell, you lose. If you let it get banned, you might just need to wait out the current political climate (i.e. end of the Israel/Palestine war; no one really cares about teens' health or some vague Chinese risk - the US can ban it overnight in case war ever erupts with China).
3. Even if they were open to a sale, it's beneficial to publicly maintain that they aren't.
