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Trump Didn't Ban TikTok In The U.S. By Executive Order As Threatened; Pompeo Says It's Going To Happen Soon; Microsoft Deal In Play
August 3, 2020 at 2:55 PM (PT)
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As ALL ACCESS first reported (NET NEWS 7/17), Pres. DONALD TRUMP was again looking into banning TIKTOK in the UNITED STATES as early as this past weekend, but it never happened. Secretary Of State MIKE POMPEO said SUNDAY (8/2) that TRUMP, "will take action in the coming days" on CHINESE apps, including TIKTOK, citing national security risks, according to CNN.
The proposed ban comes over concerns about data, privacy and security being leaked to CHINA by current owners BYTEDANCE, a BEIJING-based Internet technology company founded in 2012 by ZHANG YIMING.
TRUMP is reported to have said while on AIR FORCE ONE on FRIDAY (7/31) night, “Well, I have that authority... I can do it with an executive order..." adding, "We're banning them from the UNITED STATES." INDIA has banned TIKTOK for similar concerns since late JUNE, and as a retaliation to CHINA for its recent border disputes. INDIA has since escalated the ban to include 50+ additional CHINESE-based apps, which are also being targeted here.
Motivation for the TIKTOK ban in the U.S. is speculated not only for security matters but the increased tension on the diplomatic front between the U.S. and CHINA.
Due to the mounting ownership concerns, BYTEDANCE has reportedly agreed to sell its AMERICAN operations to prevent the TRUMP administration from banning it in the U.S., according to THE VERGE.
THE NEW YORK TIMES reported that this deal involved MICROSOFT. The deal, which would protect AMERICAN interests by being the new owner and repository for all U.S. data acquired by a deal to purchase TIKTOK's U.S. operations, is reportedly in play.
Will TRUMP buy into this MICROSOFT deal? AXIOS sheds light on what that deal could look like, reporting, "Conversations with REPUBLICANS over the weekend suggest a possible blueprint for making the proposed MICROSOFT deal palatable to the WHITE HOUSE."
As of TODAY, REUTERS is carrying an item that says TIKTOK now has until SEPTEMBER 15th to divest to MICROSOFT or some other company but "only if the US Treasury" get a piece of the action -- raising eyebrows everywhere/
TIKTOK's Huge Influence For Radio & Music
There are 100 million TIKTOK users in the U.S. Many took to TIKTOK with messages of support including TIKTOK US GM VANESSA PAPPAS.
Hiring is already leaning in this direction with more than 1,500 AMERICANS on the payroll with reported plans to hire an additional 10,000 over the next three years.
The TIKTOK app is wildly popular with teens, influencers, content creators as well as musicians, singers and songwriters. Music labels have harvested a lot of hit songs and made millions of dollars from watching metrics on TIKTOK songs, signing the creators, and releasing those song to radio and the DSPs for airplay.
Some of the biggest hits spawned by TIKTOK include: LIL NAS X/Old Town Road, ARIZONA ZERVAS/Roxanne, JAWSH 685 x JASON DERULO/Savage Love, TONES AND I/Dance Monkey, LIL MOSEY/Blueberry Fago, DABABY/Rockstar, and so many more.
ALL ACCESS is touching base with radio companies and music labels for comment.