- So it should be no surprise that Bytedance, the 100% owner of TikTok, has a value of $250bn in the secondary market, with TikTok itself valued at $75 billion.
- In August 2020, Trump issued an executive order banning TikTok. TikTok fought the ban in U.S. courts and won. Interestingly, he has reversed his opinion (rumoured in return for support from a mega donor who owns $20bn of Bytedance) and now opposes the ban.
- The argument goes that the CCP wants to weaken the US by stealth. They can’t confront the US economically or militarily, but can socially by serving up anti-adversary content which fractures society, influences elections, etc. Former Australian security adviser John Garnaut told US Congress that governments underestimate President Xi Jinping’s ambitions to interfere in elections, warning that TikTok alone had the potential for “radically reshaping” global public opinion.
- Now a bipartisan group of U.S. lawmakers introduced legislation to give China's ByteDance six months to divest TikTok or face a U.S. ban. The committee voted 50-0 to advance the bill to the full House or Representatives. The argument being that TikTok poses "key national security concerns" because it "collects tremendous amounts of sensitive data" and added Chinese ownership puts "TikTok's American users at risk." The bill is being called a ban, but it’s not. It is a requirement to sell TikTok within 6 months or it will be banned.
- The national security concerns involve China’s government influence over ByteDance against US interests is threefold:Data collection. Your interests, your computer’s unique internet protocol (IP) address and your precise location data and who is on your contact list.Espionage. China could use TikTok’s data to “track the locations of federal employees and contractors” and to “conduct corporate espionage.”Influence. US national security officials are concerned that TikTok could try to shape US public opinion by strategically suppressing or promoting certain videos. One official called the app a “Trojan horse” through which China could manipulate American thought.
- A report from the Network Contagion Research Institute at Rutgers University, found that topics Suppressed in China Are Underrepresented on TikTok. For popular pop culture and politics terms like #TaylorSwift and #Trump, the researchers found roughly two Instagram posts for every one on TikTok. But that ratio jumped to more than 8-to-1 for #Uyghur or #Uighur, 30-to-1 for #Tibet, 57-to-1 for #TiananmenSquare, and 174-to-1 for #HongKongProtest.
- TikTok naturally is fighting back with denials and on freedom of speech grounds. A TikTok spokesperson said in a statement that the current bill “will trample the First Amendment rights of 170 million Americans.”
- Both sides are twisting the truth. TikTok is not being banned like TikTok claims, but being sold, so users will not lose TikTok and TikTok is clearly being influenced by China. But selling TikTok is no simple matter. Who has pockets deep enough to buy it? Any bids by existing social platforms like Facebook would have anticompetitive issues. 6 months is not enough time for an IPO. And finally, China is expected to ‘block the sale’ even if ByteDance and other mainland investors were forced to divest their shares.
- Expect TikTok to become a focus point in the geopolitical match between the US and China as we run into the 2024 US elections (especially as Trump as now against the sale). Good summary - Time
Some of the videos that caught my eye last week. I download videos I like into my YouTube Downloads and listen when exercising, driving, walking the dog (RIP Bondi), grocery shopping and any other spare moments I have:
Some articles also catching my eye this week:
- Reddit Inc. and its investors are seeking to raise as much as $748 million in what would be one of the biggest initial public offerings so far this year.
- BlackRock’s bitcoin exchange-traded funded has reached $10bn faster than any US ETF in history, fuelled by a rally that continues to send the world’s largest cryptocurrency to record heights.
- France to Consider Assisted-Dying Bill This Year. The bill is expected to be presented at a cabinet meeting in April and discussed in Parliament from May.
- Powerhouse venture capital firm Andreesen Horowitz (a16z) is reportedly weeks away from closing a close to $7 billion raise for new funds.
- As Washington urges allies to tighten China export controls China is in the process of raising more than $27 billion for its largest chip fund to date, accelerating the development of cutting-edge technologies to counter a US campaign to thwart its rise.
- Apple and Tesla cracked China, but now the two largest US consumer companies in the country are experiencing falling market share as the two groups face rising competition and the whiplash of US-China geopolitical tensions. Both have turned to discounting to try to maintain their appeal.
- After months of mostly treading water, the gold market suddenly sprang to life last Friday, breaching December’s record and successive daily highs ever since. Chinese consumers and central banks are believed to be behind the rally.
- Hedge funds are threatening to pull investments from India because of controversial new rules introduced in response to last year’s short seller attack on Adani, one of the country’s biggest companies.
- Vic government start-up Breakthrough Victoria fund spent $22m to invest a total of just $74m from their $2 billion fund. Three directors are departing amid calls for the “unnecessary” John Brumby-led venture capital player to be wound up. It’s a cushy home for more than 50 staff, including former Victoria public servants and political staffers, at a cost of almost $9.9 million a year. The fund also spent more than $1.55 million on consultants, including PwC and EY, last financial year.
I read most nights, mornings and whenever I have a few spare minutes:
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9moRule #1, never skip an Emlyn Scott insight