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Microsoft Still in Talks to Buy TikTok After Trump Threatens Ban

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  • President Trump on Friday said that he would ban TikTok in the U.S., though he did not specify how he would go about doing so.
  • There are a number of actions he could take, including forcing the sale of TikTok to an American company, though the president initially said he did not favor this idea.
  • The announcement came just hours after it was reported that Microsoft was in talks to buy TikTok, and the two were close to finalizing a deal.
  • After reports began to circulate that the deal had been put on hold, Microsoft announced in a blog post on Sunday that it was resuming talks after the company’s CEO spoke to Trump.
  • On Monday, Trump confirmed that he had changed his mind about immediately banning TikTok and said that he would allow Mircosoft to continue negotiations for 45 days. If a deal is not struck by Microsoft or another American company in that time, TikTok will go out of business in the U.S.

Microsoft Backtracks

Microsoft announced in a blog post Sunday that it was going to continue discussions to buy TikTok in the United States after CEO Satya Nadella spoke to President Donald Trump, who had previously said on Friday that he would ban the app’s use in the United States.

“As far as TikTok is concerned, we’re banning them from the United States,” Trump told reporters. 

While the president did not say how he would ban the app, there are several options at his disposal. One possibility would be for Trump to direct the Commerce Department to put TikTok on what’s called the “entity list” which would basically block U.S. companies from having any commercial ties with TikTok.

Another option would be for the president to use a law called the International Emergency Economic Powers Act, which allows him to essentially ban any foreign communications products that are seen as a threat to U.S. national security. That option could have a very extreme outcome.

“No American could work for them,”  Stewart Baker, a former National Security Agency general counsel told The Washington Post. The app store couldn’t make them available. American advertisers couldn’t pay them for ads. It would be economically devastating for them.”

A third potential action Trump could take would be to basically force TikTok’s owner ByteDance to sell the app or divest from its U.S. operations. That would be done through the Committee on Foreign Investment in the United States (CFIUS) which recommends to the president if acquisitions should be rejected or reversed on national security grounds.

CFIUS, which is chaired by Treasury Secretary Steve Mnuchin, launched an investigation into ByteDance. According to The New York Times, a source said that as a result of the investigation, CFIUS recommended that Trump order ByteDance to divest from TikTok, which is essentially another way forcing them to sell it.

Trump on Friday said that he did not want a deal selling TikTok to a U.S. company, and when asked if he would use the International Emergency Economic Powers Act, he said, “I have that authority. I can do it with an executive order or that.”

Microsoft Deal

Trump’s announcement came just hours after reports that Microsoft was in talks to buy TikTok began to circulate. Following Trump’s announcement, the Wall Street Journal reported Microsoft had put those talks on hold.

In the Sunday blog post, Microsoft dispelled those rumors, while also publicly confirming for the first time that the company was in talks to buy the popular chinese-owned app.

“Microsoft fully appreciates the importance of addressing the President’s concerns,” Microsoft said in the post. “It is committed to acquiring TikTok subject to a complete security review and providing proper economic benefits to the United States, including the United States Treasury.”

The company stated it will move quickly and complete the discussions “no later than September 15” and continue to dialogue with Trump and his Administration. Notably, the post also noted that the preliminary proposal would include a purchase of TikTok in the U.S. as well as Canada, Australia, and New Zealand and that Microsoft “may invite other American investors” to be minority owners.

Addressing security concerns, Microsoft said it will add protections and ensure transparency and added that, in addition to other measures, the company will “ensure that all private data of TikTok’s American users is transferred to and remains in the United States.”

To the extent that any such data is currently stored or backed-up outside the United States, Microsoft would ensure that this data is deleted from servers outside the country after it is transferred.”

A deal between Microsoft and TikTok—which would probably be valued somewhere in the billions—would be a huge win for both companies. For TikTok, even though it would be a concession to pressure from the Trump administration, it would still be better than the alternative.

It would allow them to keep the app in the U.S. rather than being banned and taking a huge hit in users right after it was banned in India.

The move would arguably be an even bigger win and a definite huge step for Microsoft. Unlike almost all other big tech companies that are its competitors, Microsoft does not have a social media platform or own a social media company.

If Microsoft did acquire TikTok, not only would it be acquiring its first social media company, it would also be acquiring one of the most popular and fastest-growing platforms. Rather than starting from scratch with a platform that may or may not take off, Microsoft would be diving in headfirst.

Immediately, it would become a major rival to huge platforms like the Facebook-owned Instagram, as well as the Google-owned YouTube, especially because so many tech companies, including Facebook, have been coming up with alternatives to TikTok.

In other words, it would give Microsoft a massive foothold in a consumer market it has not been a part of before and drastically change the landscape of Big Tech in a fundamental way.

Trump Administration Response

On Monday, Trump himself confirmed that TikTok would shut down on Sept. 15 unless it was purchased by Microsoft or another company. He also said that the Treasury Department would need to get a lot of money for the deal, though he did not explain how that would work legally.

According to the Times, Trump changed his mind after several phone calls, including ones from Nadella and Sen. Lindsey Graham (R-Sc.), who voiced his support for the move on Twitter Sunday.

But there are still some high level members of the administration that believe more needs to be done to crack down on TikTok, including Trump’s top trade adviser Peter Navarro, who has taken a hardline stance on the matter.

“Every time you sign up for TikTok, all your information is potentially going right back to the Chinese Communist Party,” he said on Fox News Saturday,. “The Chinese military and the Chinese government, they can use this social these social media apps to steal your personal information, your business information.

“They use these social media apps to track you and surveil you and monitor your movements,” he continued. “This is a national security threat. So here’s what I would ask the American people. If they’re using TikTok and they hear the president is going to basically ban that, get on the Trump train with that, because that app you’re using, fun as it may be, is dangerous.”

Navarro doubled down on his remarks during an interview to CNN Monday, where he accused Microsoft of selling products to China that enable censorship and surveillance and suggested that Microsoft be required to divest from any business in China if it buys TikTok. 

“I mean, whose software does the People[‘s] Liberation Army in China run on? Microsoft. Who — the Chinese Communist Party, whose software do they use to do their — all the things they do? It’s Microsoft,” he said. 

“So, this is not a white hat company, right? It’s an American company. It’s clearly a multi-national company that’s made billions in China, that enables Chinese censorship through things like Bing and Skype.”

Secretary of State Mike Pompeo also seemed to echo Navarro in an interview with Fox News on Sunday, where he took a hardline on China but also did not rule out a sale.

“These Chinese software companies doing business with the United States, whether it’s TikTok or WeChat, there are countless more, as Peter Navarro said, are feeding data directly to the Chinese Communist Party their national security apparatus,” he said.  

“President Trump has said ‘enough’ and we’re gonna fix it. And so he will take action in the coming days with respect to a broad array of national security risks that are presented by software connected to the Chinese Communist Party,” he continued.

When asked if the Microsoft deal would still pose risks, Pompeo responded, “I promise you the president, when he makes his decision, will make sure that everything we have done drives us as close to zero risk for the American people.”

See what others are saying: (The Washington Post) (The New York Times) (The Wall Street Journal)

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House Panel Approves Commission To Study Reparations

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  • In a 25 to 17 vote along party lines, the House Judiciary Committee approved legislation Wednesday that would establish a commission to study slavery reparations for Black Americans.
  • Republicans objected to the plan, arguing that it will cost too much money and that it is unfair to make all American taxpayers responsible for the consequences of slavery.
  • Democrats pushed back, claiming the modern oppression of Black people still holds roots in slavery, and noting that the bill just creates a commission to study reparations, not implement them.
  • While the proposal faces steep odds in the Senate, Wednesday’s historic vote will move the measure to the House floor for a full vote for the first time since it was introduced over three decades ago. 

Reparation Commission Achieves First Approval

The House Judiciary Committee voted for the first time on Wednesday to advance a bill that will create a commission to consider paying slavery reparations for Black Americans.

The legislation was first proposed over 30 years ago, and if signed into law, it would create a 13-member commission that would study the effects of slavery and racial discrimination in the U.S. and then give Congress a recommendation for “appropriate remedies” to best compensate Black Americans.

The measure passed the committee 25 to 17 along party lines, as expected, with objections from Republicans, who claimed reparations will cost too much and that they are unfair to Americans who have no history of enslavers in their families.

Democrats pushed back against those assertions, arguing that the federal government does have enough money to take some kind of action. They also noted that the commission will not actually implement any reparations, but rather just look into the options and then make a non-binding recommendation.

There are a lot of different ideas for what reparations could look like. While some support direct cash payments of various sizes, others have argued there are different proposals that might be more realistic to put into law, like no-interest loans for Black homeowners or free college tuition.

“I ask my friends on the other side of the aisle, do not cancel us tonight. Do not ignore the pain, the history and the reasonableness of this commission,” Rep. Sheila Jackson Lee (D-Tx.), the lead sponsor of the bill, said Wednesday.

Others also condemned the argument that some Americans, particularly those whose ancestors did not directly benefit from owning slaves, should not bear responsibility. They said that this line of thinking ignores both generational wealth, which vastly benefits white Americans over all others, as well as how Black Americans are hurt by modern-day discrimination and oppression that has roots in slavery.

“Slavery was indeed ended 150 years ago but racism never took a day off and is alive and well in America,” Rep. Hank Johnson (D-Ga.) said in committee Wednesday. 

“You can ask the family members of Daunte Wright, Breonna Taylor, Ahmaud Arbery or George Floyd. Black folks in this country cannot keep living and dying like this. But we’ll be forced to do so if White folks in America continue to refuse to look back at history.”

Uphill Battle

While many have described the legislation as a flexible first step, any further congressional action will almost certainly be an uphill battle. The committee vote is just the very first step: the proposal still has to go to a vote by the full House, where it is unclear if it will even garner enough support among the House Democrats’ slim majority. 

If it were to pass the lower chamber, the bill faces almost insurmountable odds in the 50-50 split Senate, where ten Republicans would have to join all Democrats to break the legislative filibuster.

House Majority Leader Steny Hoyer (D-Md.) has said that he will start considering when to schedule the vote, though it is unlikely to be considered soon. Hoyer also urged President Joe Biden to use his executive power to create the commission if the legislation fails.

The White House has said that Biden supports the commission, but administration officials have not confirmed whether he would act unilaterally on the subject.

See what others are saying: (The Washington Post) (USA Today) (Vox)

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Biden To Pull All U.S. Troops From Afghanistan by Sept. 11

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  • President Biden declared Wednesday that he will pull all U.S. troops out of Afghanistan by Sept. 11, which also marks the 20th anniversary of the 9/11 attacks.
  • The Afghanistan war is the longest war the U.S. has ever been in. It has resulted in the deaths of 2,400 American troops, injured and killed almost 100,000 civilians, and cost about $2 trillion.
  • Some praised the decision as a key step to address seemingly endless wars and promote diplomacy.
  • Many experts and defense officials, however, have warned the withdrawal could undermine American goals in the region and embolden the Taliban, which is currently the strongest it has been since the U.S. invasion removed the group from power in 2001.

Biden Announces Troop Removal Amid Growing Violence

President Joe Biden announced Wednesday that he will withdraw all American troops from Afghanistan by Sept. 11, the 20th anniversary of the 9/11 terror attacks that drew the U.S. into its longest war in history.

“We went to Afghanistan because of a horrific attack that happened 20 years ago. That cannot explain why we should remain there in 2021,” Biden said in an afternoon speech. “It’s time to end America’s longest war. It’s time for America’s troops to come home.’’

The decision comes as Biden nears the May 1 deadline set under a February 2020 peace deal by the administration of former President Donald Trump to bring the troops home from the war, which has killed nearly 2,400 troops, injured and killed nearly 100,000 civilians, and cost about $2 trillion.

Biden had previously said that it would be hard to meet the date after taking office, but even with the extended timeline, many experts and defense officials have warned against the move.

The U.S. first entered the war to oust the Taliban government, which was harboring al-Qaeda militants involved in planning the 9/11 attacks. The Taliban was removed within months, but the group still had support in parts of the country and steadily regained territory and strength.

Now, almost two decades later, the group is the strongest it has been since the 2001 invasion, and according to reports, controls or has influence over half the country. The situation has also escalated in the months after Trump, during his last week in office, reduced the official number of troops in Afghanistan to 2,500, which is the lowest level since 2001.

As the U.S. has scaled down its operations, the Taliban has taken control of major highways and tried to cut off cities and towns in surges that have exhausted Afghan security forces. Violence has also ramped up in recent months.

According to a U.N. report released Wednesday, nearly 1,800 civilians were killed or wounded in the first three months of the year, a nearly 30% increase from the same period last year.

Notably, U.S. intelligence agencies have said that they do not believe Al Qaeda or other terrorist organizations present an immediate threat to strike the U.S. from Afghanistan, an assessment that reportedly played a big role in Biden’s decision to withdraw U.S. forces.

However, many experts are more concerned about how the move will impact Afghanistan and its citizens. 

Concerns Over Withdrawal

The Pentagon has warned against removing American troops from the region until Afghan security forces can effectively fight back against the Taliban.

As a result, critics of the plan have argued that withdrawal will leave the forces  — which have limited capacities and until now have been funded and trained by the U.S. — entirely in the dust

Beyond that, many also worry that the move could undermine the entire goal of the 2001 invasion by empowering al-Qaeda operates that remains in the country and who could become emboldened once the U.S. troops left.

Some experts and Afghan politicians have said that withdrawing from the country without a solid peace deal in place could end in concentrating more power in the hands of the Taliban. After a long delay following the U.S. agreement in February of last year, peace talks between the Afghan government and the Taliban finally started up in September.

But those talks have since stalled, partly due to Biden’s win and the anticipation of a possible change in policy under the new administration.

While other countries have recently made moves to restart the talks, and there are a number of possible options on the table, nothing is set in stone. American commanders, who have long said a peace deal with the Taliban is the best security measure for the U.S., have argued that the U.S. will need to use the promise of withdrawing their forces as a condition for a good deal.

Now, the U.S. has taken a major bargaining chip off the table, causing concerns that if a deal is struck, the already weakened Afghan government will make key concessions to the Taliban. Many Afghan citizens who oppose the Taliban worry that if the group secures a role in a power-sharing agreement, it could eventually take over the government and re-impose the harsh rule it imposed before the U.S. removed it in 2001. The leadership was particularly tough on women, who were largely barred from public life.

Politicians Respond

Biden’s decision has sparked a divided front from both political parities, though Republicans have largely remained united against the move.

“It is insane to withdraw at this time given the conditions that exist on the ground in Afghanistan,” Sen. Lindsey Graham (R-S.C.) said Tuesday. “A full withdrawal from Afghanistan is dumber than dirt and devilishly dangerous. President Biden will have, in essence, canceled an insurance policy against another 9/11.”

Many Democrats, however, have argued that U.S. presence in the region is not helping the U.S. achieve its foreign policy goals, and that if withdrawal is based on conditional approaches, the troops will never be able to leave. 

Others have also applauded the plan as a careful solution and will still emphasize diplomatic efforts in the region while simultaneously removing the U.S. from a highly unpopular and expensive war.

“The President doesn’t want endless wars. I don’t want endless wars. And neither do the American people. ” Sen. Chuck Schumer (D-N.Y.) said Wednesday. “It’s refreshing to have a thought-out plan with a set timetable instead of the President waking up one morning getting out of bed, saying what just pops into his head and then having the generals having walked it back.”

In a series of tweets Wednesday, Afghanistan’s president, Ashraf Ghani, said had spoken to Biden, and emphasized that the two nations would continue to work together.

“’Afghanistan’s proud security and defense forces are fully capable of defending its people and country, which they have been doing all along,” he wrote.

The Taliban, for its part, has focused more on the fact that the initial timeline had been delayed.

“We are not agreeing with delay after May 1,” a spokesperson said on television Tuesday. “Any delay after May 1 is not acceptable for us.”

It is currently unclear how that stance might affect the situation, especially when it comes to peace deal negotiations.

See what others are saying: (The New York Times) (The Washington Post) (TIME)

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Matt Gaetz Reportedly Venmo’d Accused Sex Trafficker, Who Then Sent Money To Teen

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  • A report published by The Daily Beast Thursday alleges that Rep. Matt Gaetz (R-Fl.) sent $900 through Venmo to accused sex trafficker Joel Greenberg, who then used the funds to pay three young women, including one teenager.
  • Gaetz is currently under federal investigation as part of a broader inquiry into Greenberg, a former politician who has been charged with 33 counts, including sex trafficking an underage girl.
  • Investigators are reportedly looking into the involvement of politicians with women who were recruited online for sex and paid in cash, as well as whether Gaetz had sex with a 17-year-old girl and violated sex trafficking laws by paying for her to travel with him.
  • Greenberg’s lawyer did not comment on the new allegations but said Thursday his client would soon enter a plea deal and implied that Greenberg would testify as a witness against Gaetz. Meanwhile, Gaetz has accused The Daily Beast of spreading “rumors, gossip and self-serving misstatements.”

Gaetz’s Alleged Venmo Payments 

Rep. Matt Gaetz (R-Fl.) allegedly sent money via Venmo to accused sex trafficker Joel Greenberg, who then used the money to pay three young women, including at least one teenage girl, according to a new report from The Daily Beast.

Greenberg, a former local Flordia politician and an associate of Gaetz, was indicted last summer on 33 counts, including sex trafficking a 17-year-old girl. He initially pleaded not guilty to the charges, but his lawyers said in court Thursday that he would plead guilty as part of a plea deal.

Legal experts say the move almost certainly indicates that Greenberg plans to cooperate as a witness against Gaetz, who is currently under investigation by the Justice Department as part of a broader probe into Greenberg.

According to The New York Times, among other things, the DOJ inquiry is looking into their involvement with multiple women who were recruited online for sex and paid cash, as well as whether Gaetz had a sexual relationship with a 17-year-old girl and paid for her to travel with him in violation of sex trafficking laws.

Investigators reportedly believe that Greenberg met the women through a website for people willing to go on dates in exchange for gifts and money, and then arranged for them to meet with himself and associates including Gaetz, The Times reported.

The new report from The Daily Beast, published Thursday, appears to support this narrative. According to the outlet, which viewed the transactions before they were made private this week, Gaetz sent Greenberg two late-night Venmo payments totaling $900 in May 2018. 

In the text field of the first payment, Gaetz wrote “Test.” In the second, he asked Greenberg to “hit up” a teenager who he allegedly referred to by her nickname. The Daily Beast did not publish the name of the girl “because the teenager had only turned 18 less than six months before.”

The next morning, Greenberg transferred a total of $900 to three different young women using the same app.

One of the transfers was titled “Tuition,” and the other two were both listed as “School.” The Daily Beast also said it was able to obtain “partial records” of Greenbergs Venmo, which is not publicly available.

Those records, the outlet reported, show that the two men are connected through Venmo to at least one other woman who Greenberg paid with a government-funded credit card, and at least two other women who received payments from Greenberg.

Ongoing Investigation

Gaetz, for his part, has not directly addressed the latest allegations. A representative from the Logan Circle Group, an outside PR firm, provided The Daily Beast with a statement from the congressman.

“The rumors, gossip and self-serving misstatements of others will be addressed in due course by my legal team,” the statement said, with the firm also informing the outlet that their lawyers would be “closely monitoring your coverage.”

Greenberg’s defense attorney, Fritz Scheller, also declined requests to comment, but during a press conference Thursday, he implied that the plea deal his client is expected to accept spelled trouble for Gaetz.

“I’m sure Matt Gaetz is not feeling very comfortable today,” Scheller said.

The Daily Beast story also comes amid reports that that the FBI has widened its probe of Gaetz. According to The Times, sources familiar with the inquiry have said investigators are also looking into a trip he took to the Bahamas with other Florida Republicans and several women.

Sources said the trip took place shortly after Gaetz was elected to Congress in 2016, and that the FBI has already questioned witnesses about whether the women had sex with the men in exchange for money and free travel.

It is illegal to trade sex for something of value if prosecutors can provide the exchange involved force, fraud, or coercion.

The Times also reported that investigators are now additionally looking into Gaetz’s alleged involvement in discussions to run a third-party candidate in a State Senate race to make it easier for an associate of his who was running for the seat to win.

The act of recruiting so-called “ghost candidates” who run for office purely to divert votes from one candidate is not usually illegal. However, paying a ghost candidate is normally considered a violation of campaign finance laws.

See what others are saying: (The Daily Beast) (The New York Times) (The Hill)

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