It seems like the move is to force ByteDance to set up a company incorporated wholly in the United States, which would then be subject to the oversight of the US government. Then, Byte Dance would lease the IP surrounding TikTok to this separate company. All the US customer data would be siloed on US servers and perused by US agencies and Byte Dance would still get their revenue from the US market. I don't know if the close association with ByteDance and China would still make that sort of arrangement a target of the US government.

As it is now ByteDance is owned by 60% mostly US investors and 40% by mostly Chinese founder and employees.

Would it be ok with this law if they brought down the 40% to 20% by an IPO in Singapore or the UK?

Facebook (fold it into Instagram)? Google (fold it into YouTube Shorts)? Elon Musk if he wants to lose even more money? Or any other very rich big tech company that wants to have an insanely addictive social media app? If nobody buys it then it will lose much of its value anyway by not being usable by a huge moneyed market which will apply downwards pressure on the price as buyers play chicken with each other. Plenty of buyers.