So I think the Biden administration is just being a little more methodical, and the implications could be greater. Because it is so hugely popular and because it's a Chinese-based company.Įven though the company says American user data has never lived inside of China, it doesn't mean that a Chinese official can't walk into TikTok's office and say, "Get the data and give it to us" and TikTok and ByteDance not be legally required to in China because they are, that's Chinese law. I think it's about data sharing broadly, American citizen's data, that potentially getting into the Chinese government's hands in a very broad way and TikTok is just the poster child of this right now. I don't think this is what they're doing, is just about TikTok. Jason Hall: Yeah, my take on this whole thing is I think the Biden administration, if you want to think about this from a broader investing implications perspective, which is what we want to try to do is I think they're taking a more of a macro approach and less of a micro approach. So I think there's still going to be stumbling blocks, even if the Biden administration is a little bit more easygoing on China than the Trump administration was. Which means that's what TikTok uses to recommend the videos to users. side of the house, Chinese regulators threw out a rule, not too long after the deal was initially announced that said that they were not going to allow artificial intelligence (AI) algorithms that were used in Chinese companies outside of the country. They're going to take a more holistic approach to this, and once they look at it, make a decision, I think that if the Biden administration is more easy-going on this and maybe less of like a bulldog with it between their teeth, like the Trump administration was, yeah, I think there's a possibility.īut generally speaking, even if that were to come to fruition on the U.S. regulators under the Biden administration look at the big picture and that's what they're going for. I think a lot of it is going to depend on how U.S. What's your take?ĭanny Vena: I'm leaning a little bit toward Nick's opinion here. Danny, I know when you shared your link in the chat here in f for folks to check out, you wrote something about this earlier today. Jason Hall: Yeah, there's obviously not any political will for the Chinese government to let this great asset to become just another American social media company. But I don't think public investors in the U.S. Unless of course there is some other already public Chinese company like Tencent ( TCEHY 1.74%) or Alibaba ( BABA -0.25%) or something like that, that acquires TikTok. investors aren't going to get a shot at it. If you don't think we're heading to a more friendly relations, I don't think it's more likely this company is going to come public. and China when it comes to listing standards, accounting, any of those things that I don't think we're headed toward a more conciliatory posture. If you look at relations between the U.S. The fact that we have a new administration in place who seems to be committed in a similar way to at least slowing down this deal, if not totally pushing this deal off to where it's not going to take place. There's been tension between that administration in China. There was speculation that maybe this was a Trump administration thing. I think if it's the hot take section, my hot take is I just don't think it's happening. Nick Sciple: I don't think it's happening, Jason. What happens next with TikTok as a potential investments for US investors? There should be five people on the board so Walmart would have one of those seats. Doug McMillon, that's Walmart's CEO, was going to serve on the Board for the new company that was going to be created. Oracle was going to own 12.5% and become TikTok's cloud provider. They were going to acquire a 20% stake in TikTok. First of all, I didn't know the deal was even still pending. Jason Hall: So the Biden administration has formally shelved the pending deal for TikTok.
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