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TikTok sale uncertain as Trump ban looms: reports
By Julie JAMMOT
San Francisco (AFP) Aug 2, 2020

ByteDance offers to sell TikTok's US ops as Trump ban looms: report
San Francisco (AFP) Aug 1, 2020 - ByteDance, the Chinese parent company of wildly popular TikTok, has offered to sell the app's US operations as a way to avert a ban by the government of President Donald Trump, The New York Times reported Saturday.

After weeks of rumors and pressure, Trump said Friday he was preparing to bar the app from operating in the United States, perhaps by executive order on Saturday.

Earlier, media reports had suggested Trump would require that the US operations of the app be divested from ByteDance, but he instead announced a ban.

But the Times report, citing an unnamed source familiar with the matter, goes further to say that ByteDance has offered to do so.

The proposed divestment would not necessarily affect TikTok's operations outside the United States, the report said.

TikTok, especially popular with young audiences who create and watch its short-form videos, has an estimated one billion users worldwide.

But US officials have raised concerns that it could be used as a tool for Chinese intelligence -- a claim the firm has repeatedly denied.

"While we do not comment on rumors or speculation, we are confident in the long-term success of TikTok," the company said when asked for comment on the Times report.

Some reports have indicated that Microsoft is in advanced talks to buy TikTok.

Negotiations for Microsoft to buy the US operations of Chinese-owned TikTok are on hold after President Donald Trump threatened to bar the social media app and came out against the sale, the Wall Street Journal reported Saturday.

Trump has pledged to get tough on the massively popular video-sharing app, which US officials have said could be a tool for Chinese intelligence -- a claim the firm, owned by Chinese internet giant ByteDance, has repeatedly denied.

While there has been no sign yet of the ban he threatened on Friday to impose, his words were reportedly already adding to uncertainties for TikTok.

"Before Mr. Trump's remarks, the two sides believed the broad strokes of a deal could be in place by Monday," the paper reported on a possible TikTok-Microsoft sale, citing unnamed sources.

It also said Trump's threats and opposition to the deal had prompted TikTok to make further concessions, including adding up to 10,000 jobs in the US over the next three years.

TikTok defended itself on Saturday, with its general manager for the US, Vanessa Pappas, telling users that the company was working to give them "the safest app," amid US concerns over data security.

"We're not planning on going anywhere," Pappas said in a message released on the app.

TikTok, especially popular with young audiences who create and watch its short-form videos, has an estimated one billion users worldwide.

It has grown even faster as the coronavirus pandemic has pushed people physically away from each other, but into close contact online.

Earlier media reports had suggested Trump would require that the app's US operations be divested from ByteDance, but he instead announced a ban.

Trump's announcement drew criticism from some in the tech sector, including former Facebook chief security officer Alex Stamos, who questioned whether the move was spurred by national security concerns.

"A 100 percent sale to an American company would have been considered a radical solution two weeks ago and, eventually, mitigates any reasonable data protection concerns," he wrote on Twitter.

TikTokers employed the apps' signature short-form videos to poke fun at Trump.

One clip that was liked over 300,000 times shows a young woman stacking bricks and smearing orange paint on her face, apparent digs at the president's skin tone and controversial pledge to build a wall between the US and Mexico.

"Me trying to convince Trump to let us keep TikTok", read the text on the post.

- 'For the long run' -

The American Civil Liberties Union cried foul over the possibility of a ban on the app.

"Banning an app that millions of Americans use to communicate with each other is a danger to free expression and is technologically impractical," said the ACLU's surveillance and cybersecurity counsel, Jennifer Granick.

"With any Internet platform, we should be concerned about the risk that sensitive private data will be funneled to abusive governments, including our own," Granick said in a statement.

"But shutting one platform down, even if it were legally possible to do so, harms freedom of speech online and does nothing to resolve the broader problem of unjustified government surveillance."

Pappas said she was "proud" of TikTok's 1,500 US employees, and also noted the "additional 10,000 jobs" the company plans on creating in the US in the next three years.

"When it comes to safety and security, we're building the safest app because we know it's the right thing to do," she said.

"So we appreciate the support. We're here for the long run, and continue to share your voice here and let's stand for TikTok."

Trump says will bar TikTok from US
Washington (AFP) Aug 1, 2020 - President Donald Trump said Friday he will bar fast-growing social media app TikTok from the United States as American authorities have raised concerns the service could be a tool for Chinese intelligence.

US officials and lawmakers in recent weeks have voiced fears of the wildly popular video platform being used by Beijing for nefarious purposes, but the company has denied any links to the Chinese government.

Media reports circulated earlier Friday saying that Trump would require the US operations of the app be divested from its Chinese parent firm ByteDance, but the president announced a ban.

Speaking to reporters on Air Force One, Trump said: "As far as TikTok is concerned, we're banning them from the United States."

He added he would take action as soon as Saturday using emergency economic power or an executive order. However, it was unclear how such a move may be enforced.

TikTok, especially popular with young audiences who create and watch its short-form videos, has an estimated billion users worldwide.

TikTok declined to comment on the reports of the forced sales, saying only: "We are confident in the long-term success of TikTok.

"Hundreds of millions of people come to TikTok for entertainment and connection, including our community of creators and artists who are building livelihoods from the platform."

Trump's move comes following a review by the Committee on Foreign Investment (CFIUS) in the United States, which investigates deals affecting US national security.

The firm this week pledged a high level of transparency, including allowing reviews of its algorithms, to assure users and regulators.

"We are not political, we do not accept political advertising and have no agenda -- our only objective is to remain a vibrant, dynamic platform for everyone to enjoy," TikTok CEO Kevin Mayer said in post this week.

"TikTok has become the latest target, but we are not the enemy."

Earlier this month Secretary of State Mike Pompeo told Fox News that the administration was "looking at" banning the app in the US.

The comments prompted popular TikTokers to consider migrating to platforms such as YouTube, the New York Times reported.

Late Friday TikTok users reacted furiously to the news, telling fans to follow them on different platforms and criticising the president.

- 'Close to zero' -

The popularity of the platform surged after ByteDance acquired US-based app Musical.ly in 2017 and merged it with its own video service.

Earlier reports had suggested that Microsoft was in talks to acquire TikTok, which could be valued in the tens of billions of dollars, but Trump's move would scupper such a purchase.

James Lewis, head of the technology policy program at the Center for Strategic and International Studies, said he believes the security risk of using TikTok is "close to zero" but that ByteDance could face pressure from China to engage in censorship.

"It looks like ByteDance may be getting squeezed by Beijing, so making them divest makes sense," Lewis said. "They could start censoring stuff."

Lewis said US authorities under CFIUS have the power to unwind an acquisition previously approved and that a similar action was taken in 2019 with the dating app Grindr after it was bought by a Chinese firm.

India has already barred TikTok over national security and privacy concerns while other countries are reportedly mulling similar measures.


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