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TikTok Chooses Oracle To Be Its U.S. “Technology Partner.” Is It Enough to Stop a U.S. Ban?

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  • TikTok’s parent company, ByteDance, accepted an offer from the software company Oracle on Sunday after rejecting a deal with Microsoft, which was widely considered a favorite in the bidding for the app.
  • However, the deal is not expected to be an outright sale. Under it, ByteDance retains ownership of TikTok but will outsource the cloud management of its data.
  • It is unclear if the compromise could be at odds with a new Chinese law that prevents ByteDance from selling the app to a foreign company without the Chinese government’s permission. 
  • Some are also concerned the Trump administration might not accept this compromise if it is found to not adequately address the administration’s national security concerns. 

TikTok Accepts Oracle Bid

ByteDance, TikTok’s parent company, chose to partner with the software company Oracle on Sunday instead of Microsoft, which was considered a frontrunner in the bidding for control of the app’s U.S. operations.

“We are confident our proposal would have been good for TikTok’s users, while protecting national security interests,” Microsoft said in a blog post Sunday. “To do this, we would have made significant changes to ensure the service met the highest standards for security, privacy, online safety, and combatting disinformation…” 

Shortly after this announcement, ByteDance confirmed it had accepted Oracle’s bid. While it is still unknown how much Oracle offered or how it compares to Microsoft’s bid, one of the reasons why ByteDance may have chosen Oracle instead is because of the deal itself.

Microsoft has wanted to buy TikTok from ByteDance. Oracle, on the other hand, has reportedly struck a different deal. According to multiple outlets who spoke to people familiar with the discussions, ByteDance has described Oracle as its new “technology partner.” This later matched language used by Treasury Secretary Steven Mnuchin on CNBC’s “Squawk Box” Monday. 

Under the conditions of the deal, ByteDance would retain ownership of TikTok and its algorithm. Meanwhile, it would outsource the cloud management of its data to Oracle. 

According to Mnuchin, ByteDance is committed to moving its headquarters from China to the United States, bringing with it 20,000 new jobs. That condition is reportedly to quell concerns that ByteDance would still be subject to laws that would require it to share data with the Chinese government if directed. 

China’s New Rule

On Monday, Chinese state media reported: “ByteDance will not sell TikTok’s U.S. operations to Microsoft or Oracle, nor will the company give the source code to any U.S. buyers, sources said.”

That doesn’t mean the reports of this deal are fake. Outsourcing management of data isn’t the same as giving the source code. 

Instead, this is referring to a recent law revision in China meant to complicate or even halt the sale of TikTok to a U.S. company. That law, which was changed at the end of last month, now prevents Chinese companies from selling certain types of technology to foreign buyers without the explicit permission of the Chinese government.

Regarding why China changed this law all of a sudden, political economist Shirley Yu told CNN Business, “Beijing wants to protect its ascending status in global technology.”

For now, it remains unclear if China sees this deal as a win or if it thinks it goes too far, especially because it could mean a shift for TikTok’s global headquarters. It’s also unclear whether or not this deal could simply skirt that revised law altogether or if the Chinese government would still need to sign off on it.

Will the Trump Administration Accept This Compromise?

It’s not just China that could complicate this deal. Last month, President Donald Trump issued two executive orders against TikTok. The first, signed on Aug. 6, banned any transactions with the app starting on Sept. 20. The other, signed on Aug. 14, gave ByteDance 90 days to divest from its American assets and any data that TikTok had gathered in the U.S.

“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 said in his second executive order.

Trump has repeatedly expressed fears that ByteDance could hand over U.S user data to China; however, TikTok has consistently denied that claim, saying that U.S. user data is stored domestically with a backup in Singapore.

Still, pressure remained, prompting the push for an American company to buy U.S. operations of TikTok.

This latest deal with Oracle has cast doubt over whether it’s enough to meet the Trump administration’s national security concerns. For example, Alex Stamos, a cybersecurity expert and former Facebook security head, said on Twitter that the deal “would not address any of the legitimate concerns about TikTok, and the White House accepting such a deal would demonstrate that this exercise was pure grift.”

One former U.S. official, who spoke with The Washington Post, also noted that the current deal, at least at the moment, seems “well short of a U.S. company taking over the asset and the algorithm, and politically, it would be a massive climb-down from what the president said he was going to accomplish with this.”

According to a current senior administration official who also spoke with The Post, “It’s not a climb-down.”

The official stressed any deal would need to be approved by an interagency group, which would first confirm that national security standards have been met. “All of the details are not out,” that official added. 

On “Squawk Box,” Mnuchin said that he’s open to hearing the offer, adding that Oracle has made “many representations for national security issues.”

It’s not unreasonable to think that the U.S. may approve the deal. Oracle’s CEO, Larry Ellison, is a prominent Trump supporter and the company itself even has close ties to the administration. According to Axios, that could give it an edge in trying to win White House approval.

Still, even though Trump has called Oracle a “great company,” Trump has also been adamant that TikTok must become a fully U.S.-owned company, so it is also likely that this deal will not meet the administration’s demands. 

As for what’s next, ByteDance, Oracle, the U.S., and possibly the Chinese government would all need to sign on to this deal. Because of that, the idea that it could all fall apart isn’t out of the realm of possibility.

The deadline for this deal to be reached is Sept. 20. If there’s still no agreement by then, TikTok will likely try to obtain a temporary injunction to remain usable. 

See what others are saying: (The Washington Post) (Axios) (The Wall Street Journal)

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Trisha Paytas Departs From “Frenemies” Podcast With Ethan Klein

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The announcement came after Paytas and co-host Ethan Klein engaged in a heated argument on the most recent episode of their show.


Paytas and Klein Argue

YouTuber Trisha Paytas announced Tuesday that they are stepping down from the “Frenemies” podcast with Ethan Klein. 

Paytas, who uses they/them pronouns, posted a 22-minute long video explaining their decision. The departure comes after Paytas and Klein got in a heated argument on the most recent episode of “Frenemies,” which paying members had access to on Monday and the general public received access to on Tuesday. 

The dispute started when Paytas appeared unenthusiastic about a new advice segment that was added to the show. Klein then made a comment about how Paytas contributes nothing to “Frenemies” and just shows up to film, which ignited a fight about creative differences the two have when it comes to the production of the podcast.

Paytas seemed overall frustrated that they do not have more input on the show and that their ideas are allegedly often dismissed.

“I never pick the costumes, I never do the Vlogs, I give so many ideas,” they said. “I say dancing for the vlogs, I give all these ideas and you don’t…I don’t think it’s a good segment.” 

Paytas also mentioned that they get no say on new hires even though Klein uses 5% of the podcast’s revenue, as well as money earned from highlight episodes of the podcast, to pay the crew and cover production costs. Klein, however, argued that he does not need to run new hires by Paytas because those people are hired as employees for his production company, H3 Productions, which produces and airs “Frenemies.”

These are employees of our production company,” he said.

“It’s literally about we are producing the show and I am taking a cut, I feel like that is beyond reasonable,” he later added. 

Klein claimed that he already gives Paytas 50% of everything else, which he argues is an incredibly good deal considering H3 Productions does all the backend work. Paytas still felt differently and said that “Frenemies” should have its own employees. 

After the argument escalated, Paytas walked off the set holding back tears and the episode ended. Many found Paytas’ comments, specifically the ones referencing the crew and their pay, to be rude and disrespectful. 

Paytas Leaves “Frenemies”

On Tuesday morning, Paytas posted a video announcing and explaining their departure. They claimed that the crew was frustrated and did not want to film with Paytas the next day, partially because the segment Paytas had slammed came from a new hire. 

Paytas stressed that wanting more money was not their issue. Instead, they said they truly just wanted the show to be more of a 50/50 partnership creatively. Paytas said that while they understand Klein produces the show, they would have loved to pitch in on producing as well, but often just felt like an outsider. 

“I do feel like I contributed half to Frenemies, building the H3 channel,” Paytas explained. “Like I would have loved to have Frenemies on my channel and build up my channel. I could have produced it, I could have built sets, I’m capable of this stuff.” 

Paytas also clarified that they have no issue with the crew. While Paytas said they were not sorry for bringing these issues up, they were sorry for how the message was delivered. 

They added that in the end, they really felt like they brought an underappreciated value to the show. Paytas also said that in the beginning of this partnership, they were under the impression that they would be building something entirely new with Klein. 

“If I knew I was coming in as a third H3 show, like I swear hand to god I would not have done it,” they said.

Paytas added a lengthy comment below the video after it was posted, saying they were leaving “to ease the tension everywhere.”

“I don’t want to be the toxicity in their machine,” Paytas continued. “And I can feel that I am. And it’s not good for anyone involved.”

Klein and Paytas Lash Out on Twitter

Klein responded to the video on Tuesday. In two posts he joked about it being National Best Friend’s Day and asked what he should do with the 4,000 “Frenemies” hoodies he has. In a more serious tweet, he said he was “gutted” about the situation. 

Trisha’s video this morning was a total surprise to me,” he added. “I don’t really know what more I can say or do. I’m very sorry to all the fans of frenemies, I know how much it meant to everyone, I did everything I humanly could to save it.”

Things escalated later in the day when Paytas posted a second video further explaining their decision to leave the podcast. They said the last thing they ever wanted to do was disrespect the crew, and again emphasized that money was never their issue.

Paytas also acknowledged that they should have never brought up money on the podcast or in front of the crew in the first place. Things, however, continued to spiral on Twitter as Paytas and Klein engaged in a stormy back-and-forth. 

Among other things, Klein said he was angry that Paytas’ fans were sending hate to the crew members online. He said he reached out to Paytas because he was upset with the way they handled things but said he will ultimately always cherish his experience making “Frenemies.”

Paytas responded to him and insisted they were never rude to the crew themself. Paytas also shared text messages, accusing Klein of being misleading and flip-flopping on how the money for production costs was spent. Paytas is receiving a considerable amount of backlash for one of the texts they shared, as one screenshot shows them making an antisemitic remark to Klein. 

Crew members also engaged in online discourse about the news, including Dan from H3 Productions, who accused Paytas of lying in their videos. According to Dan, the crew was actually fully prepared to film with Paytas the next day and Klein was the one to cancel the shoot. 

Dan also said that the new hire was not the person who came up with the segment Paytas took issue with and instead was just the person who presented and prepared it.

Klein and Paytas later deleted most of their tweets attacking each other. Both said they should not have aired those feelings and messages on Twitter.

Paytas Apologizes To Fans and Klein

On Wednesday morning, Paytas apologized to Klein and others who worked on “Frenemies,” saying they were “embarrassed” by the situation. In a separate tweet, Paytas apologized to fans for ending things so turbulently.

“I feel horrible,” they wrote. “This is the worst feeling to see people think I’m this heartless monster who doesn’t do anything wrong. I have been in the wrong so many times on frenemies, they’ve been really wonderful to me.”

Paytas then uploaded a third video titled “I’m Sorry.” In it, they said the whole situation had been blown out of proportion and that the first two videos were meant to clarify issues but only made things worse. They again apologized for leaving the podcast and for disappointing fans. 

“I don’t know how to make the situation right…I don’t know what to do,” Paytas said.

See what others are saying: (Mashable) (Insider) (Paper)

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Showtime Will Process Refunds After Crashing During Paul Vs. Mayweather Fight

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Many said they were unable to watch the highly anticipated pay-per-view event because of technical difficulties.


Showtime To Issue Refunds

Showtime is processing refunds for customers who could not watch Sunday’s highly anticipated fight between YouTuber Logan Paul and boxing champion Floyd Mayweather because of technical difficulties on the streaming platform. 

The night of the event, Twitter was full of users complaining that Showtime had crashed during the fight. The company released a statement saying it was “aware that some customers have been having trouble accessing tonight’s Pay Per View event” and was “working diligently to resolve the issue and will redress customers appropriately.”

Showtime Support’s Twitter account later told people to return to the event in ten minutes, though that still did not resolve the issue for many viewers.

In a tweet on Monday, the service said anyone who purchased the fight via Showtime’s website or app but was unable to watch it could request a refund. 

What Happened During the Fight?

The fight ultimately lasted eight rounds, ending without a knockout or winner. After the match, Mayweather said Paul was “better” than he anticipated. 

“He’s a tough, rough competitor,” he continued. “It was good action, to have fun and I was surprised by him tonight. Good little work, good guy.” 

“I don’t want anyone to tell me anything is impossible ever again,” Paul told reporters. “The fact that I’m in here with one of the greatest boxers of all time proves that the odds can be beat.”

A report from The New York Times said that both Paul and Mayweather “assuredly took home millions” from the event, but exactly how much they made is still a mystery.

See what others are saying: (The Hollywood Reporter) (The New York Times) (The Wrap)

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Amouranth Says Twitch Suspended Ads on Her Channel Without Warning

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Amouranth claims Twitch never specified what made her channel unsuitable for ads, but many have pointed to her controversial hot tub streams, which are technically allowed under the platform’s guidelines.


Amouranth Reveals Twitch Ad Suspension

Twitch streamer Kaitlyn Siragusa, known online as Amouranth, said Tuesday that the platform indefinitely suspended ads on her channel without any warning or communication. 

Siragusa has become known for her hot tub streams, a trend that has recently stirred controversy on Twitch. The platform’s terms of service technically allow streamers to wear bathing suits so long as they provide appropriate coverage and the person is streaming from a location where swimwear is standard attire. Hut tub streams fit this bill, but some believe they cross a line and are in bad taste. Others, however, think the largely female streamers participating in the trend should be allowed to continue these streams and are doing no harm.

Twitch has largely stayed out of this issue, though the company previously said it had its eyes on the situation. Now, according to Siragusa, the company might be taking a stand. 

“Yesterday I was informed that Twitch has Indefinitely Suspended Advertising on my channel,” she wrote on Twitter, claiming the company did not reach out to tell her. 

“I had to initiate the conversation after noticing, without any prior warning, all the ads revenue had disappeared from my Channel Analytics.”

“This is an ALARMING precedent,” she continued. She claimed that even if content falls within the site’s terms of service, Twitch has the ability to “target individual channels” and decide what is and is not “advertiser friendly” even though there are no clear guidelines for this. 

“There is no known policy for what results in a streamer being put on this blacklist,” Siragusa added. “With characteristic opacity, The only thing twitch made clear is that it is unclear whether or when my account can be reinstated.”

While it looks like Twitch never specified what about her channel was not advertiser-friendly, people have unsurprisingly pointed to her hot tub streams. Twitch has not issued a comment on the matter, but its alleged decision to demonetize Siragusa would be a major one. According to Kotaku, the platform has never used its power to demonetize a creator before. 

Creators Respond to Amouranth’s Claim

Online, some have cheered Twitch’s alleged decision while others have slammed the platform for its lack of communication. Several creators have echoed Siragusa’s concerns that it sets a dangerous precedent when it comes to what kind of content the site can crack down on. 

“Why is it that they just didn’t come over and say, ‘stop doing this, or we are going to demonetize you.’ You know what I mean?” streamer Asmongold asked during a stream on Tuesday. 

“Look, I understand people are getting a hard-on because they’re happy this thing happened because they don’t like hot tub streamers, I get that,” he continued. “But you understand what she’s saying, she’s not wrong! She’s not wrong in saying this, this is true. And them not talking to her at all about it?” 

Streamer and adult film star Mia Malkova shared his concerns and confusion about Twitch not reaching out to Siragusa first. 

No statement/warning is ridiculous and no way to treat the people that use their platform,” Malkova said in a tweet to Siragusa. 

On Twitter, streamer Devin Nash called out those who celebrated the demonetization, claiming that while some users might agree with Twitch in this instance, the move could impact a creator they support in the future.

If you think this stops at sexual content, think again,” he wrote.

One of Twitch’s most popular streamers, xQc, who was previously very critical of hut tub streams, seemed to imply that he felt Siragusa’s demonetization signaled a potential issue for everyone on Twitch. He encouraged people to “chill out” until there is more communication from Twitch on the matter, but added that this means “things are a little bit adaptive” on the site. 

There’s a lot of people that do the same content that she does,” he said on a Tuesday stream. “And if everybody does the same content, and something was [against the terms of service], if one got banned, you guys would all say, ‘Look at the other guys that aren’t being banned.’ But now that this is against her and she loses her ads, nobody is saying, ‘But what about the other guys? Why aren’t they losing their ads?’” 

He later added that this move “might have saved everybody from losing their ads” and that Siragusa “might be a scapegoat” for other streamers, but did not elaborate on that point. 

See what others are saying: (Kotaku) (The Verge) (BBC News)

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