Plans for a TikTok sale may have a new obstacle, with China implementing new rules on AI technology exports, The New York Times reported. The new export control rules, which focus on technology the Chinese government considers sensitive, could mean that TikTok’s parent company, Beijing-based ByteDance, might need a license before it can sell TikTok to an American company.

The updated regulations prohibit exporting technology including text analysis, voice recognition, and content suggestions without a license from the Chinese government. According to The Wall Street Journal, a Chinese government official told state-run Xinhua News Agency that ByteDance should “seriously and cautiously” consider halting talks for a sale of TikTok.

Microsoft has been the front runner in talks to acquire TikTok which will apparently involve Walmart, and reports suggesting everyone from Twitter to Netflix to Oracle also were in separate talks with TikTok. Amid all the chaos, TikTok CEO Kevin Mayer resigned August 27th, less than six months into the job.

President Trump signed an executive order August 6th blocking all transactions with ByteDance, and has demanded that an American company purchase TikTok’s US business. The order was intended to take effect within 45 days. Then on August 14th, the president signed an order giving ByteDance 90 days to sell or spin off TikTok in the US, the culmination of an investigation of the company by the Committee on Foreign Investment in the US (CFIUS), which oversees foreign acquisitions of US companies for any potential security risks.

It wasn’t clear Saturday whether the Chinese government would seek to block a TikTok sale entirely.

The wildly popular video-sharing platform hit 2 billion downloads globally in April, with 315 million downloads in the first quarter of the year alone.

A TikTok spokesperson declined to comment Saturday.

source: TheVerge

Also Read:

JAPAN’S ‘FLYING CAR’ GETS OFF GROUND, WITH A PERSON ABOARD

WORLD’S FIRST VIRTUAL ART MUSEUM VOMA SET TO OPEN IN SEPTEMBER

APPLE TO LAUNCH ITS OWN WEB-BASED SEARCH ENGINE

THINGS TO LOOK OUT FOR WHEN BUYING A GAMING SMARTPHONE

TOYOTA LAUNCHES NEW YARIS CROSS COMPACT SUV WITH HYBRID OPTION

FORD, BOSCH, BEDROCK PARTNER ON AUTONOMOUS PARKING

Facebook Inc and Snapchat owner Snap Inc held talks to buy Dubsmash, the Information reported on Wednesday, putting a spotlight on pop video apps at a time when Microsoft Corp is trying to work out a deal to buy rival TikTok.

Facebook and Snap were no longer in deal talks, the report said.

“We admire the team but aren’t in active talks to acquire,” a Snap spokesman said.

While Dubsmash was not immediately available for a response, Facebook said it would not comment on market speculation.

The Dubsmash news comes days after U.S. President Donald Trump threatened to ban China’s TikTok and prohibit transactions with its parent ByteDance if it does not reach a deal with Microsoft to divest itself in 45 days.

Trump has given Microsoft until Sept. 15 to put together a blueprint deal, which could safeguard the personal data of Americans stored on the app.

Dubsmash was approached by both Facebook and Snap about a deal in recent weeks, the Information reported here citing a person familiar with the matter, adding that the talks included discussions of deal value in hundreds of millions of dollars.

Facebook is also facing antitrust scrutiny for acquiring former competitors, including photo-sharing app Instagram and messaging app WhatsApp.

President Donald Trump on Friday gave the Chinese company ByteDance 90 days to divest itself of any assets used to support the popular TikTok app in the United States. 

Trump's executive order said there is credible evidence that leads me to believe that ByteDance might take action that threatens to impair the national security of the United States.

Trump last week ordered sweeping but vague bans on dealings with the Chinese owners of TikTok and the messaging app WeChat, saying they are a threat to US national security, foreign policy and the economy.

It remains unclear what the TikTok orders mean for the app's 100 million US users, many of them teenagers or young adults who use it to post and watch short-form videos.

Trump on Friday also ordered ByteDance to divest itself of "any data obtained or derived" from TikTok users in the U.S.

Microsoft is in talks to buy parts of TikTok.

White House press secretary Kayleigh McEnany defended Trump's earlier TikTok and WeChat orders Thursday, telling reporters he was exercising his emergency authority under a 1977 law enabling the president to regulate international commerce to address unusual threats.

The administration is committed to protecting the American people from all cyber threats and these apps collect significant amounts of private data on users, said McEnany, adding that the Chinese government can access and use such data.

TikTok said it spent nearly a year trying to engage in good faith with the US government to address these concerns.

What we encountered instead was that the Administration paid no attention to facts, dictated terms of an agreement without going through standard legal processes, and tried to insert itself into negotiations between private businesses, the company's statement said.

Source: RSS

Also Read:

FACEBOOK DARK MODE COMING SOON?

FACEBOOK, SNAP HELD TALKS TO BUY TIKTOK RIVAL DUBSMASH: INFORMATION

MICROSOFT’S SURFACE DUO HAS REVEALED IT'S RELEASE PLANS

SAMSUNG LAUNCHES GALAXY WATCH3 AND BUDS LIVE

HMD GLOBAL NOKIA PHONES RAISES $230 MILLION INVESTMENT FROM STRATEGIC PARTNERS

DISH HOME LAUNCH FIBER TO THE HOME INTERNET SERVICE INSIDE KATHMANDU VALLEY

Kevin Mayer has quit as CEO of TikTok as the Chinese-owned video sharing app faces enormous backlash from President Donald Trump.

"In recent weeks, as the political environment has sharply changed, I have done significant reflection on what the corporate structural changes will require, and what it means for the global role I signed up for," Mayer said in a memo to employees that was obtained by CNN Business. "Against this backdrop, and as we expect to reach a resolution very soon, it is with a heavy heart that I wanted to let you all know that I have decided to leave the company."

"We appreciate that the political dynamics of the last few months have significantly changed what the scope of Kevin's role would be going forward, and fully respect his decision," a TikTok spokesperson said in a statement.

TikTok hired Mayer, a former top Disney executive, less than four months ago. The move appeared to be designed to bolster the app's American credentials and improve its standing with US regulators.

Since then, though, it has come under fire from the US government, and Trump has threatened to ban the app.

source:cnn

Also Read:

ANT GROUP'S CHINESE IPO BIGGEST IN HISTORY

GOOGLE LOCATION-TRACKING TROUBLED ITS OWN ENGINEERS

GOOGLE HOME 2.27 BRINGS DARK THEME TO ANDROID

ONLINE LEARNING EFFECT ELECTRONIC DEVICE USAGE TO RISE

SMARTPHONE WINNERS OF EISA AWARDS 2020-2021

NEW APPLE PRIVACY RULES FOR ITS MOBILE DEVICES

WHAT ARE BEST GAMING PHONES AVAILABLE IN NEPAL?

The proposed purchase, in partnership with Microsoft Corp, would allow the world’s largest retailer to quickly compete with Amazon.com Inc, Facebook Inc and Alphabet Inc’s Google for eyeballs on social media, reaching customers across virtual and physical sales channels.

TikTok is up for sale as the Chinese-owned company is under fire from the Trump administration as a potential national security risk due to the vast amount of private data the app is compiling on U.S. consumers.

Walmart, which pitched its ad business to large consumer goods companies and advertising firms for the first time last year, said on Thursday it was “confident” it could meet U.S. TikTok users’ expectations and satisfy U.S. regulators’ concerns.

TikTok owner ByteDance aims to ink a deal by Sept. 15, people familiar with the matter told Reuters.

“Walmart is going to see a very quick rise in ad spend” if its bid succeeds, said Scott Smigler, president of e-commerce marketing agency Exclusive Concepts.

“From a brand standpoint, it’s a no brainer because of the reach Walmart has and the huge shift we’re seeing right now from offline to online (spending). ... For all of our brands and retailers that are eligible, we’re going to want them on Walmart for sure.”

Last week, Walmart posted its biggest-ever quarterly growth in online sales, as the unprecedented spike in demand seen by big-box retailers at the peak of the coronavirus lockdowns has remained strong even as restrictions ease.

Walmart does not break out revenue from sponsored ads for products sold on its website. But online ads yield much higher margins than product sales, and ad revenue is growing as the retailer boosts investments in the area.

It has been more important than ever for Walmart to find new ways to win market share from its closest e-commerce rival Amazon.com, a fast-growing ad platform, as customers increasingly shop online.

Amazon reported $4.2 billion in advertising and other revenue for the most recent quarter, nearly double what it brought in for the same period two years prior. That amount is up 41% from the year-ago period.

Retailers including Target Corp and grocers such as Tesco Plc  have aggressively wooed big advertisers to their websites to drive sales through pop-up banners and search-bar keywords.

In July, Bentonville, Arkansas-based Walmart rolled out new features for its in-house advertising platform Walmart Media Group.

Walmart has seized many opportunities to scoop up online brands like Bonobos, which it purchased for $310 million in 2017, and Art.com, which it bought for an undisclosed amount in 2018.

In 2010, Walmart announced its new video-on-demand service with its acquisition of Vudu, which also offers a free ad-supported streaming option. However, Vudu still lags far behind the monthly viewership numbers that competitors Netflix and Hulu pull in, and Walmart sold it to Comcast Corp-owned Fandango Media LLC, a movie ticketing service, in April.

Investors are viewing Walmart’s play for TikTok as a potential win, and are raring to know more details.

“It’s really hard to put a value on the return they’re (Walmart) going to get from this” possible acquisition, said Randy Hare, portfolio manager at Huntington Private Bank.

“But clearly the market’s excited about this because this could really help Walmart with a new channel of advertising.”

Source:Reuters

Also Read:

GOOGLE LOCATION-TRACKING TROUBLED ITS OWN ENGINEERS

GOOGLE HOME 2.27 BRINGS DARK THEME TO ANDROID

ONLINE LEARNING EFFECT ELECTRONIC DEVICE USAGE TO RISE

SMARTPHONE WINNERS OF EISA AWARDS 2020-2021

MICROSOFT TO PERMANENTLY CLOSE ALL PHYSICAL STORES

CHINA AUTO SALES OFF 22.4% IN FIRST HALF OF 2020

FACEBOOK, MICROSOFT VOICE CONCERNS OVER THEIR GAMES APPEARING ON APPLE'S APP STORE AMIDST ANTITRUST PROBES