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TikTok’s Chinese owner offers to forego stake to clinch U.S. deal – sources

336 pointsby clashmeifyoucanalmost 5 years ago

55 comments

billfruitalmost 5 years ago
As someone from the third world this leaves a very bad feeling if it happens. I do expect it runs into legal hurdles before that.<p>Neither Apple nor Google have found TikTok problematic enough to delist them from their app stores. Neither is there charges that TikTok may have broken US laws.<p>Banning something which hasn&#x27;t broken US laws, on arbitrary grounds shouldn&#x27;t be possible.<p>The President shouldn&#x27;t have authority to ban anything at all let alone an app available through privately operated app stores.<p>Also dictating which apps an individual can install&#x2F;not install shouldn&#x27;t be the job of the Federal Government.<p>All indication is that the president does not have authority to execute an outright ban of the thing.<p>Also what alarms me the veil of secrecy on the procedings. The proceeding of the CFIUS should be made public in this regard.<p>At this point US is seemingly acting like a dictatorship with very less transparency.<p>Policies and decisions should be debated and argued before they are executed, not merely justified after the fact. That&#x27;s what US and a few oher democracies have turned to doing in recent years.<p>Ultimately I feel that it is US who has been more to blame (contrary to much of Western media coverage) for the deteriorating US-China relationship, and drumming up the chorus for a new coldwar. Chinese policy seems to have not significantly changed in the last 5 years towards the US, but on the other hand US seemed ever more keen and eger to pursue a hostile attitude towards China.<p>With the pandemic and with genral economic malice affecting much of the world, I don&#x27;t think a path of increasing hostility and conflict is what the world needs.
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volgoalmost 5 years ago
The interesting thing is that these platforms come and go. One year it’s Vine, another year it’s Snap, now it’s TikTok. ByteDance bought musically for $1B in 2017 and turned it into Tok.<p>3 years later, it’s grown like crazy because it’s the latest fad and would be smart for them to cash out before the next new thing hits<p>The whole divestment thing is probably a godsend for ByteDance, “forcing” them to liquidate their stake, but in reality let’s them cash out on an overhyped app that’s easy to copy<p>Must be laughing all the way to the bank
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pknerdalmost 5 years ago
US is doing with China what China did with them. American VCs and business men used to criticize and mock Chinese government for it. Since US is following the footsteps of China, I wonder whether Chinese will be doing what US VCs did?
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brandonmencalmost 5 years ago
Future startup biz strategy:<p>Chinese company makes huge viral app for the US market, and lets everyone stoke rumors that it&#x27;s a spying platform. US gov&#x27;t tosses a huge subsidy at whatever domestic company can acquire it <i>at any cost</i> - in the interest of national defense - resulting in massive overvalued purchase. China pockets the profits. Rinse, repeat.
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MangoCoffeealmost 5 years ago
Some people here think TikTok is a fad. I used to think FB is a fad but 16 years later. FB is still here. Not as shiny as it used to be but enough to make billions.<p>I don&#x27;t know if TikTok is a fad and you don&#x27;t either. If TikTok last more than 10 years. It already make back its cost and some more.<p>Heck, Snap is still around and it used to be a meme stock on WallStreetBets.
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schukealmost 5 years ago
I wonder if anyone know that TikTok is currently actively blocking access from Chinese users. Even with a US Apple ID, even with a VPN&#x2F;Shadowsocks service, you cannot sign up TikTok as long as your phone is using a Chinese SIM card. I have to use an iPad.<p>What you have is something the internet has never seen: unlike Google having to censor its content within China, you now have a allegedly independent US company actively censoring the Chinese people on a social network that identifies itself as non-political, on US (or Free World) soil.<p>This is a type of censorship that&#x27;s far worse than anything Google or Yahoo or Microsoft ever had to do. Imagine more and more Chinese-owned companies doing this world wide. This is just absolutely ugly practice that shouldn&#x27;t be allowed to proliferate.<p>It&#x27;s not only a national security issue. It&#x27;s also a human rights hazard.
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chvidalmost 5 years ago
Great policy. The EU needs to do the same with American big tech.
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AnonymousRideralmost 5 years ago
Tired of the apologists for China. They have been taking advantage of our Western tradition of openness for far too long.
quantum_statealmost 5 years ago
The government&#x27;s behavior should not be allowed in a country of rule of law. We should all wake up to defend our God given right to use apps we like. Guys, please don&#x27;t fall into the trap of us vs them. The governments are all bullying us, the people. They raised tariff in the name of whatever, yet in reality, they collect more tax and we pay more for goods we need. The same goes with banning apps. The reality is that we are being stripped away more and more choices and freedom. So, we the people need to wake up and stand against it!
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mrtksnalmost 5 years ago
As I currently recide in a country famous for blocking access to websites, I follow these developments as closely as I can.<p>Whatever happens, it&#x27;s probably going to be a recipe on how to force all foreign providers to act the way the local government wants. These days the theme is forcing on the ant-gay stance, they managed to force Netflix a show that had a gay character in it. Besides that charade, they passed laws to control the social media in the name of national security and citizens rights. This comes after Twitter exposed and deleted a pro government troll army.<p>Anyway, if this happens Facebook, Google, Twitter etc. can start looking into the future of Instagram for Iran, Twitter for Turkey, Google for EU - all forced to partner with a local company and the global versions inaccessible.<p>I am sure that the US ban of TikTok would be well rationalised but the US could have chosen the EU approach of enforcing US data being kept on US soil. Sad that US choose the Chinese approach of right our of banning(because somehow becoming like China is the way of topping the authoritarian Chinese order). Something tells me that this is not about national security.<p>Welcome to the world of partitioned internet in the name of national security. A boring dystopia where the less fre world no longer has a role model.<p>I hope you enjoy the life where the government is telling you what you can and can&#x27;t use so that the country stays safe. Brilliant system that served all kind of authoritarian regimes.<p>Good luck to the start-ups, from now on you are looking to a future where you will have to strike a deal with each country you want to operate.<p>&quot;Your app just crossed the TOP100 mark in the AppStore, would be shame if something happens to it because of national security. Maybe you should sell it to our crony while it&#x27;s still worth something&quot;
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nardialmost 5 years ago
The real reason behind this is that TikTok teens ruined his Tulsa rally and now he wants to get back at them. Simple as that.
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myspamdelialmost 5 years ago
It’s pretty clear the US gvt doesn’t care about the monopolistic practices by big tech, the privacy concerns of TikTok, or that CCP has access to user data. It’s their lack of access to the private user data of this hugely popular app they lack and are after.<p>Having MSFT buy it means they’ll have a back door to TikTok content immediately just like they do Skype. The US 3 letter agencies have been gunning for this ever since the app blew up, and unlike all the valley apps they have had no access to its user data.
balolaalmost 5 years ago
This is a game America can&#x27;t win, either way the CCP gets to keep the upper hand, everpresent threat or discrediting entirely.
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rdiddlyalmost 5 years ago
Sorry, under what legal framework does the Executive branch of the US government &quot;ban&quot; an app, and what does that look lik, i.e. what actions does it take, and has it ever happened before?
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ajarmstalmost 5 years ago
Any fallout from this will be interesting. It can be easily argued that this is a case of the US President (not the US Government) using arbitrary emergency powers-—or the threat of their use—-to interfere with a business deal on behalf of a US company. Even ignoring suits from Facebooks’s competitors, effect on existing trade deals, and justification for foreign government interventions against US companies, one wonders if this is the start of a new trade war with China or just a warning to other social media companies (“nice market penetration you got there, shame if something were to happen to it“).
dannyralmost 5 years ago
So how will this work?<p>Will there be 2 apps? Tiktok US and Tiktok for the rest of the world?
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e-clintonalmost 5 years ago
They’re banning TikTok because they don’t want a Chinese company having direct access to the location, camera, and microphones of hundreds of millions of Americans. I have the app installed and have all those permissions disabled.<p>I understand that it seems unfair but I get where they’re coming from given that China isn’t exactly a saint when it comes to spying&#x2F;civil rights.<p>I think it Microsoft agrees to take ownership of the data and protecting it, it doesn’t make sense to ban it. I’m surprised Verizon or Twitter hasn’t stepped up with bid
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jungletimealmost 5 years ago
Whenever I read an implied claim of someone doing something in my interest in an news article, I assume the opposite of what the claim is.
xoxoyalmost 5 years ago
i don’t really get how this works. will the US one have global users or just US ones?
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vlkralmost 5 years ago
this can be a good way for europe, too. after the last court ruling: <a href="https:&#x2F;&#x2F;www.cnbc.com&#x2F;2020&#x2F;07&#x2F;16&#x2F;european-court-rules-on-facebook-vs-schrems-case.html" rel="nofollow">https:&#x2F;&#x2F;www.cnbc.com&#x2F;2020&#x2F;07&#x2F;16&#x2F;european-court-rules-on-face...</a> there must be changes. Maybe this means us users can&#x27;t see eu users in the social networks and vice versa. But then we could finally post our nipples on instagram!
learc83almost 5 years ago
To me TikTok feels like ytmnd.com with videos instead of images. I spent hours there when I was younger.
ETHisso2017almost 5 years ago
I&#x27;d like to see any YC users come by and claim the US has a &quot;free market&quot; at this point.
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FactCorealmost 5 years ago
From a Chinese multinational to an American multinational. I&#x27;m not convinced that any sort of data safety will arise from this. This is really just US giving China a taste of its own medicine.
crb002almost 5 years ago
If they get paid in MS stock with a little cash that&#x27;s probably the best exit they could hope for. Hopefully MS doesn&#x27;t kill it off like Skype - which should have been Zoom.
michaelyoshikaalmost 5 years ago
if you stare into the abyss, the abyss stares back at you
idealsalmost 5 years ago
<i>social media app that has up to 80 million daily active users in the United States.</i><p>Crazy that one person can ban something over 1&#x2F;4 the US population uses every day. The implications of that are staggering.<p>(for any politically trigger fingered voters who think this opinion is derived based on current administration, you would be incorrect. I do not think something like this should ever be decided by a single person, it should go through congress and if a new law or decision is the result of that, the party which is to be banned should have the ability to make their case to SCOTUS)
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xeromalalmost 5 years ago
So is there going to be a US TikTok and a World TikTok?
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woopwoopalmost 5 years ago
Is there any way to know with certainty whether the president has any financial interest in Microsoft? If there is, does he?
lovetocodealmost 5 years ago
TikTok is horrible. Less then a day after signing up I was getting spam text messages with Chinese writing.
cannabis_samalmost 5 years ago
Another step in the balkanization of the internet, to the cheers of governments around the world..
ezVoodooalmost 5 years ago
Which law of the USA has been broken by TikTok?<p>Or it is banned just because it&#x27;s an app from China?
tlowalmost 5 years ago
Will their value plummet if they are banned before an acquisition can take place?
factorialboyalmost 5 years ago
What if China stalls and the US administration changes in a few months.
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unnamedprophetalmost 5 years ago
While this sort of quashing of free markets may be permissible for sovereign nations, it comes with a heavy cost. Trump, and by proxy the U.S., moves to force the hand of ByteDance to divest itself of all interest in TikTok at fire sale prices through threat of shutting them down. The U.S. establishes its reputation for stifling competition whenever a strong enough sovereign interest is in play. China, and other countries, will respond in kind to protect their own interests - Tesla, Apple, Intel and whatever other company has a juicy stake in China are held hostage until they concede their interests of to a China state-run company. Imagine trying to do business in another country when the fear of takeover looms overhead if you ever become too successful? This behavior only serves to encourage more protectionist and isolationist markets.
_emacsomancer_almost 5 years ago
Microsoft to buy? Selling the hen house to the fox?
ktln2almost 5 years ago
It is funny to see comments like “this will only strengthen the hostility of Chinese people against US” - the fact is most if not all Chinese see US as their arch nemesis.
slewisalmost 5 years ago
It’s interesting that folks are generally giving Trump the benefit of the doubt. There are many comments to the effect of “while there is no public evidence, maybe the US government has secret evidence that TikTok has broken the law.”<p>Trump is incredibly vindictive. Remember a month ago when he hosted a way under-attended rally, because of a fake registration movement that spread on, yup, TikTok? Trump remembers.
la6471almost 5 years ago
This thread is hijacked by members of Chinese communist party - they are flagging all anti Chinese messages in this thread. Beware!!! My message got flagged just for saying that the CCP should discover the vaccine for Covid 19 and give democratic rights to people of China and someone flagged my message.
djimalmost 5 years ago
what about not collecting user data? isnt that better than msft collecting it?
jrsdavalmost 5 years ago
I wonder how long this deal has actually been in the works, and Trump, seemingly privy to this knowledge, saw a good opportunity to take credit by pre-empting the inevitable announcement of a sell off. Why else would he announce his plans of an executive order instead of just doing it?
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vonwoodsonalmost 5 years ago
Ok, but for real: TikTok is a propaganda machine for China. End of story.
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cmurfalmost 5 years ago
&gt;We are not an M&amp;A (mergers and acquisitions) country,” Trump said.<p>What? Can anyone parse this?
nameloswalmost 5 years ago
From the US-China conflict perspective, it seems the Trump administration is looking for something that China cannot easily retaliate.<p>China can easily pick a consulate to close when the US closes consulate in Houston. But businesses from the US in China always require Chinese companies to operate, just like World of Warcraft is operated by NetEase in China.<p>After Microsoft acquire Tiktok&#x27;s operation, if China just picks some US business to do the same it would make China looks too soft because China is already doing this for decades, and Trump could claim the US has beaten China in this round. But if China escalates the conflict by retaliating in radical ways, the Trump administration could rally more before the election.
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mark_l_watsonalmost 5 years ago
Maybe I am blaming the wrong companies&#x2F;countries but it seems to me that platforms like iOS and Android should provide near perfect sand boxing for all apps, including TikTok. No app should be able to quietly have access to our devices.<p>The new beta for iOS is doing a better job by having little notifications of what app is using the camera, microphone, your contacts, etc.<p>I would also like to speculate on something: Peter Theil owns a lot of Facebook stock and TikTok is a market threat to Facebook. Peter Theil is close with President Trump. You can see where I am going with this...
bitxbitxbitcoinalmost 5 years ago
That&#x27;s one way to avoid a US ban.
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Waterluvianalmost 5 years ago
At what point do the big tech companies see the real threat of Trump and begin actively campaigning against him?<p>Feels like they have immense power if they decided to act politically.
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Ijumfsalmost 5 years ago
So will they be keeping all the intrusive spyware features as a part of this deal?
praveen9920almost 5 years ago
Trump&#x27;s grudge on Tiktok users apart, could this be a plot of hostile take over?<p>With all the public threats ByteDance is receiving from president of USA, Msft or any other company which acquires, gets one of the biggest social networking site of the decade at give away price.
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insonalmost 5 years ago
Why there&#x27;s a so much hype about blocking TikTok? China blocked multiple US websites by replicating them first and blocking them (Google, FB, Twitter), irony, isn&#x27;t it? Were those websites against Chinese laws? I&#x27;m surprised by some people reacting negatively to this. P.S. I am not a pro Trump.
CyanLite4almost 5 years ago
Trump seems intent on this because of the Tulsa Rally fiasco. But at what point does it backfire on him? Tens of millions of pissed off 18yr olds could easily sway the election.<p>Meanwhile, Microsoft has quietly avoided the anti-trust spotlight recently yet has acquired github, LinkedIn, and now a social network that could rival Facebook. Satya Nadella is a genius.
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pinkfootalmost 5 years ago
So soon all the tech savvy kids will learn that their favourite apps are only available on the Hauwei app store?
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liuliualmost 5 years ago
Just echo back on U.S. doesn&#x27;t have precedents of blocking software in the article. I don&#x27;t think that&#x27;s true. U.S. has both means (file request to Apple and Google to pull software off the shelf, remove the domain from root DNS etc) and done these before for piracy and other reasons.
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andrewPPalmost 5 years ago
Us companies like Facebook and Twitter had a chance to operate in China as long as they were willing to follow local laws&#x2F;policies; they were banned because they didn’t want to cooperate. On the other hand, TikTok seems willing to obey us laws and is bringing its team&#x2F;data center into the us. Banning TikTok in spite of that sounds similar to injecting disinfectant for COVID
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samstavealmost 5 years ago
<a href="https:&#x2F;&#x2F;www.reddit.com&#x2F;r&#x2F;videos&#x2F;comments&#x2F;fxgi06&#x2F;not_new_news_but_tbh_if_you_have_tiktiok_just_get&#x2F;?sort=top" rel="nofollow">https:&#x2F;&#x2F;www.reddit.com&#x2F;r&#x2F;videos&#x2F;comments&#x2F;fxgi06&#x2F;not_new_news...</a>
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cwhizalmost 5 years ago
I’m fine with anything that damages China. The entire western world should be grouping together to fight the Chinese state. Their behavior the last couple of decades is obscene.<p>Right now, in 2020, China is operating Muslim concentration camps. Their factories are “employed” by de facto slave labor.<p>The western world should universally shun China. Ban anything that originates from China or anything that contains parts or software that originates from China.
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