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Chinese State Media Calls TikTok-Oracle Deal “Reasonable” as Trump Signals Approval

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2 years ago

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  • On Friday, the United States Commerce Department issued an order that would ban U.S. downloads of TikTok and WeChat starting Sunday night.
  • The order for TikTok was delayed for one week on Saturday after President Donald Trump gave his preliminary approval on a deal between TikTok and the software company Oracle.
  • A federal judge also issued a temporary injunction Sunday against the WeChat ban, which would have largely destroyed the app’s functionality.
  • Oracle and Walmart have since released more details of the deal, including that TikTok Global will likely pay $5 billion in U.S. taxes. This does not seem to be the same as a commission from the deal, even though Trump suggested such.
  • On Monday, Chinese state media called the deal “unfair” on ByteDance, TikTok’s parent company. However, it also described it as “reasonable,” suggesting the Chinese government may approve the deal.

U.S. and China Signal Support for Deal

What began as a tumultuous weekend for TikTok ended with both the U.S. and Chinese governments potentially signaling approval of its deal with Oracle. 

Last week, TikTok’s parent company, ByteDance, struck a deal with Oracle to avoid a U.S. ban. On Monday, Chinese state media called the deal “more reasonable to ByteDance,” and said it’s less costly than a shutdown.

“The plan shows that ByteDance’s moves to defend its legitimate rights have, to some extent, worked,” it added.

While not officially confirmed, this seems to suggest that the Chinese government may approve the deal. 

It also came off the heels of Saturday, when President Donald Trump, after having suggested unhappiness with the deal last week, said he has given his approval “in concept.” He will still need to officially sign off on it before the deal is set into motion.

Because of that, the U.S. Commerce Department staved off a download ban that was set for Sunday, now pushing it back to this coming Sunday, Sept. 27.

Some Republicans, such as Senator Marco Rubio (R-Fl.), have still expressed concern because ByteDance won’t be handing over its secretive algorithm as part of the deal.

What’s in the Deal?

On Saturday, Oracle released more details of its deal with TikTok. Under it, Oracle and Walmart would take a combined 20% stake in TikTok Global.

Still, there’s been much back and forth over how much control ByteDance, will have under the agreement. For his part, Trump has claimed that TikTok Global will “be a brand new company… It will have nothing to do with China.”

However, ByteDance has maintained that it will retain 80% of the stake. The discrepancy here seems to be because 40% of ByteDance is owned by U.S. venture capital firms. Therefore, Trump could technically claim that TikTok Global will be majority-owned by U.S. money.

Trump doubled down Monday and said that he would not approve the deal if ByteDance retained ownership. He added that the Chinese-owned company will “have nothing to do with it, and if they do, we just won’t make the deal.”

Later, Oracle announced that ByteDance will not have any stake in TikTok Global, though this statement heavily conflicts with what is being reported in China.

“Upon creation of TikTok Global, Oracle/Walmart will make their investment and the TikTok Global shares will be distributed to their owners, Americans will be the majority and ByteDance will have no ownership in TikTok Global,” the company said.

According to Walmart and Oracle, if this deal goes through, TikTok Global will pay $5 billion in new tax dollars to the U.S. Treasury over the next few years. As both companies noted, this is just a projection of future corporate taxes, and that estimate could change.

The water around that $5 billion figure was later muddied as Trump claimed that TikTok Global would be donating “$5 billion into a fund for education so we can educate people as to [the] real history of our country — the real history, not the fake history.”

To be clear, Trump is referring to his plans to establish a “patriotic education” commission.

On Sunday, ByteDance said in a statement that this was the first it had heard about a $5 billion education fund.

In fact, TikTok Global never promised to start an education fund. Instead, it promised to create an “educational initiative to develop and deliver an AI-driven online video curriculum to teach children from inner cities to the suburbs a variety of courses from basic reading and math to science, history and computer engineering.” 

That initiative doesn’t seem to have anything to do with that $5 billion tax figure. Since he began pursuing a ban, Trump has vowed that the U.S. will receive some form of commission from a deal with TikTok. As far as it is known, this $5 billion figure is also not that commission.

As previously reported, this deal will allow Oracle to host TikTok’s user data on its cloud service and review TikTok’s code for security. According to Treasury Secretary Steven Mnuchin, it would also shift TikTok’s global headquarters from China to the U.S.

On top of that, TikTok’s board members would reportedly have to be approved by the U.S. government, with one being an expert in data security. That person would also hold a top-secret security clearance.

Commerce Department Announces Download Ban

Friday seemed like the beginning of the end for TikTok. That morning, the Commerce Department issued an order that would ban U.S. downloads of not only TikTok but also WeChat starting Sunday night.

Both bans were a result of concerns the Trump administration has that ByteDance and WeChat’s parent company, Tencent, are either already giving or could give U.S. user data to the Chinese government.

The Trump administration has repeatedly said that both apps pose a national security threat.

TikTok and ByteDance have consistently denied these claims, saying that U.S. user data is stored domestically with a backup in Singapore. WeChat, for its part, has also made similar statements.

The download ban was announced in response to two Aug. 6 executive orders from Trump. Those orders ban any U.S.-based transactions with TikTok and WeChat starting on Sept. 20, which is why the Commerce Department set the deadline for this past Sunday.

While this ban would have been much more restrictive for WeChat because a large part of its functionality relies heavily on in-app transactions, for TikTok at least, it would only affect new downloads and updates to the app.

“So if that were to continue over a long period of time, there might be a gradual degradation of services, but the basic TikTok will stay intact until Nov. 12,” Commerce Secretary Wilbur Ross told Fox Business on Friday.

“If there’s not a deal by Nov. 12, under the provisions of the old order, then TikTok would also be, for all practical purposes, shut down.” 

What Happens on Nov. 12?

Ross is referring to another executive order, this one signed on Aug. 14. Notably, it gives ByteDance 90 days to divest from its American assets and any data that TikTok had gathered in the U.S. As Ross pointed out, that requirement could be satisfied if a deal is reached before the deadline.

If that doesn’t happen, the TikTok app could begin to see lags, lack of functionality, and sporadic outages.

However, it’s not just the U.S. One of the big questions that loomed after Oracle and ByteDance confirmed their deal last week was whether or not China would also need to approve it. ByteDance later confirmed that it will need the confirmation of the Chinese government, despite the deal not involving a technology transfer. 

Downloads Soar and TikTok Sues

On Friday, downloads for both apps soared. TikTok was downloaded nearly a quarter of a million times that day, up 12% from the previous day. WeChat was downloaded 10,000 times, up 150%.

The same Friday, TikTok as a company criticized the Commerce Department order, saying it had already committed to “unprecedented levels of additional transparency.”

TikTok added that the order “threatens to deprive the American people and small businesses across the US of a significant platform for both a voice and livelihoods.”

Later Friday, TikTok sued the Trump Administration to stop the download ban. 

On Sunday, a federal judge also halted the download ban for WeChat with a preliminary injunction. The injunction additionally blocks the Commerce Department’s attempt to bar transactions on the app.  

The Commerce Department responded by saying that it’s preparing for a long legal battle.

TikTokers: “Scared, angry, and confused”

“I’ve mostly just been feeling scared, angry, and confused,” TikToker Isabella Avila, known online as onlyjayus, told Rogue Rocket on Monday. “Those are just the main things.” 

Avila has amassed a following of 8.7 million followers on TikTok in a relatively short amount of time. She’s also gained about half a million followers on YouTube and Instagram each.

A couple of months ago, Avila said she thought a potential ban was all just talk; however, as the situation progressed, she said she became more worried.

While she said that she personally thought her career could survive a TikTok ban (thanks in part to a Netflix podcast deal), she added, “The people in-between a 100,000 to a million [followers], they have a platform right now, and if TikTok’s were to be gone, their platform’s pretty much gone if they haven’t built an audience on anything else. 

“This is where we go to express ourselves,” she said. “This is where we go to make videos. I don’t know, TikTok gave everybody a chance to kind of get famous and have a following. That’s what people liked about it. YouTube, it’s really hard to get followers and subscribers. TikTok was a lot easier.” 

Avila also expressed that a ban wouldn’t just be detrimental to creators. 

“I feel like my generation needed an app,” Avila said. “There was Instagram and Twitter, but it was kind of like for the millennials. Gen Z didn’t really have an app, and TikTok kind of fit that spot, so if TikTok’s gone, I don’t know, I feel like Gen Z isn’t really going to have a place.” 

Avila now says she is largely hopeful that TikTok will not be banned in the U.S.

See what others are saying: (The Washington Post) (NBC News) (Axios)

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Schools Across the U.S. Cancel Classes Friday Over Unverified TikTok Threat

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1 year ago

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December 17, 2021

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Officials in multiple states said they haven’t found any credible threats but are taking additional precautions out of an abundance of safety.

School Cancelled

Schools in no fewer than 10 states either canceled classes or increased their police presence on Friday after a series of TikToks warned of imminent shooting and bombs threats.

Despite that, officials said they found little evidence to suggest the threats are credible. It’s possible no real threat was actually ever made as it’s unclear if the supposed threats originated on TikTok, another social media platform, or elsewhere. 

“We handle even rumored threats with utmost seriousness, which is why we’re working with law enforcement to look into warnings about potential violence at schools even though we have not found evidence of such threats originating or spreading via TikTok,” TikTok’s Communications team tweeted Thursday afternoon. 

Still, given the uptick of school shootings in the U.S. in recent years, many school districts across the country decided to respond to the rumors. According to The Verge, some districts in California, Minnesota, Missouri, and Texas shut down Friday. 

“Based on law enforcement interviews, Little Falls Community Schools was specifically identified in a TikTok post related to this threat,” one school district in Minnesota said in a letter Thursday. “In conversations with local law enforcement, the origins of this threat remain unknown. Therefore, school throughout the district is canceled tomorrow, Friday, December 17.”

In Gilroy, California, one high school that closed its doors Friday said it would reschedule final exams that were expected to take place the same day to January.

According to the Associated Press, several other districts in Arizona, Connecticut, Illinois, Montana, New York, and Pennsylvania stationed more police officers at their schools Friday.

Viral Misinformation or Legitimate Warnings?

As The Verge notes, “The reports of threats on TikTok may be self-perpetuating.”

For example, many of the videos online may have been created in response to initial warnings as more people hopped onto the trend. Amid school cancellations, videos have continued to sprout up — many awash with both rumors and factual information.

 “I’m scared off my ass, what do I do???”  one TikTok user said in a now-deleted video, according to People. 

“The post is vague and not directed at a specific school, and is circulating around school districts across the country,” Chicago Public Schools said in a letter, though it did not identify any specific post. “Please do not re-share any suspicious or concerning posts on social media.”

According to Dr. Amy Klinger, the director of programs for the nonprofit Educator’s School Safety Network, “This is not 2021 phenomenon.”

Instead, she told The Today Show that her network has been tracking school shooting threats since 2013, and she noted that in recent years, they’ve become more prominent on social media. 

“It’s not just somebody in a classroom of 15 people hearing someone make a threat,” she said. “It’s 15,000 people on social media, because it gets passed around and it becomes larger and larger and larger.”

See what others are saying: (The Verge) (Associated Press) (People)

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Jake Paul Says He “Can’t Get Cancelled” as a Boxer

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1 year ago

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November 1, 2021

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The controversial YouTuber opened up about what it has been like to go from online fame to professional boxing.

The New Yorker Profiles Jake Paul

YouTuber and boxer Jake Paul talked about his career switch, reputation, and cancel culture in a profile published Monday in The New Yorker. 

While Paul rose to fame as the Internet’s troublemaker, he now spends most of his time in the ring. He told the outlet that one difference between YouTube and boxing is that his often controversial reputation lends better to his new career. 

“One thing that is great about being a fighter is, like, you can’t get cancelled,” Paul said. The profile noted that the sport often rewards and even encourages some degree of bad behavior.

“I’m not a saint,” Paul later continued. “I’m also not a bad guy, but I can very easily play the role.”

Paul also said the other difference between his time online and his time in boxing is the level of work. While he says he trains hard, he confessed that there was something more challenging about making regular YouTube content. 

“Being an influencer was almost harder than being a boxer,” he told The New Yorker. “You wake up in the morning and you’re, like, Damn, I have to create fifteen minutes of amazing content, and I have twelve hours of sunlight.”

Jake Paul Vs. Tommy Fury

The New Yorker profile came just after it was announced over the weekend Paul will be fighting boxer Tommy Fury in an 8-round cruiserweight fight on Showtime in December. 

“It’s time to kiss ur last name and ur family’s boxing legacy goodbye,” Paul tweeted. “DEC 18th I’m changing this wankers name to Tommy Fumbles and celebrating with Tom Brady.”

Both Paul and Fury are undefeated, according to ESPN. Like Paul, Fury has found fame outside of the sport. He has become a reality TV star in the U.K. after appearing on the hit show “Love Island.”

See what others are saying: (The New Yorker) (Dexerto) (ESPN)

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Hackers Hit Twitch Again, This Time Replacing Backgrounds With Image of Jeff Bezos

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1 year ago

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October 8, 2021

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The hack appears to be a form of trolling, though it’s possible that the infiltrators were able to uncover a security flaw while reviewing Twitch’s newly-leaked source code.

Bezos Prank

Hackers targeted Twitch for a second time this week, but rather than leaking sensitive information, the infiltrators chose to deface the platform on Friday by swapping multiple background images with a photo of former Amazon CEO Jeff Bezos. 

According to those who saw the replaced images firsthand, the hack appears to have mostly — and possibly only — affected game directory headers. Though the incident appears to be nothing more than a surface-level prank, as Amazon owns Twitch, it could potentially signal greater security flaws. 

For example, it’s possible the hackers could have used leaked internal security data from earlier this week to discover a network vulnerability and sneak into the platform. 

The latest jab at the platforms came after Twitch assured its users it has seen “no indication” that their login credentials were stolen during the first hack. Still, concerns have remained regarding the potential for others to now spot cracks in Twitch’s security systems.

It’s also possible the Bezos hack resulted from what’s known as “cache poisoning,” which, in this case, would refer to a more limited form of hacking that allowed the infiltrators to manipulate similar images all at once. If true, the hackers likely would not have been able to access Twitch’s back end. 

The photo changes only lasted several hours before being returned to their previous conditions. 

First Twitch Hack 

Despite suspicions and concerns, it’s unclear whether the Bezos hack is related to the major leak of Twitch’s internal data that was posted to 4chan on Wednesday.

That leak exposed Twitch’s full source code — including its security tools — as well as data on how much Twitch has individually paid every single streamer on the platform since August 2019. 

It also revealed Amazon’s at least partially developed plans for a cloud-based gaming library, codenamed Vapor, which would directly compete with the massively popular library known as Steam.

Even though Twitch has said its login credentials appear to be secure, it announced Thursday that it has reset all stream keys “out of an abundance of caution.” Users are still being urged to change their passwords and update or implement two-factor authentication if they haven’t already. 

See what others are saying: (The Verge) (Forbes) (CNET)

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