ByteDance is expanding TikTok’s footprint in the U.S. — but the Senate has some questions

ByteDance is buying up more real estate for TikTok employees in the United States. The Beijing-based parent company — which is currently the subject of a U.S. Senate inquiry — has purchased 143,000 square feet of real estate to add to its footprint in Culver City.

TikTok has already established a presence in Culver City. In 2020, the video app moved into five-floor office in the Los Angeles suburb.

Initially, that complex included 120,000 square feet of space, but it’s about to get a massive upgrade. As first reported by the brokerage Savills, ByteDance is adding 53,202 square feet to its existing lease. It’s also acquiring another 90,049 square feet of space at a separate Culver City address. That deal is a sublease agreement.

According to Savills, the deal was the fourth-largest office deal in Los Angeles during the third quarter. TikTok also operates out of several other U.S. offices, including spaces in Chicago, New York, and Austin.

Some of ByteDance’s other U.S. operations are coming under scrutiny.

Recently, TikTok employees have sounded the alarm about the transfer of ByteDance employees from Beijing to U.S.-based operations. According to the Wall Street Journal, high-ranking execs at TikTok’s parent company have transferred Stateside, where they’ve taken leadership roles related to advertising, human resources, monetization, business marketing, and ecommerce products. Some of those execs brought their teams overseas with them.

That trend has the United States Senate up in arms yet again. Senators Richard Blumenthal (D-CT) and Marsha Blackburn (R-TN) have published a letter asking TikTok CEO Shou Zi Chew to account for his company’s hiring practices. “The personnel changes give the impression that TikTok is attempting to preserve ByteDance’s influence over TikTok while avoiding suspicion,” the letter reads.

In response, a TikTok spokesperson claimed that executive migrations are normal within a “large, global organization” such as ByteDance. “It is not uncommon for employees to work on different products or geographies over the course of their career,” the spokesperson said.

The letter could reignite calls for a ban on TikTok’s operations in the U.S. But with a recent report suggesting that ByteDance’s revenue is down year-over-year, the Beijing-based firm will likely fight tooth and nail to defend its growing U.S. presence.