TikTok’s Sale Is Reportedly Off — for Now, as Biden Puts the Brakes on a Ban
Sam primarily covers entertainment and media for dot.LA. Previously he was Marjorie Deane Fellow at The Economist, where he wrote for the business and finance sections of the print edition. He has also worked at the XPRIZE Foundation, U.S. Government Accountability Office, KCRW, and MLB Advanced Media (now Disney Streaming Services). He holds an MBA from UCLA Anderson, an MPP from UCLA Luskin and a BA in History from University of Michigan. Email him at samblake@dot.LA and find him on Twitter @hisamblake
First it was 90 days, then an additional 15, and then the forced TikTok sale faded from national consciousness as the presidential election altered the priorities of the country and the Trump administration. Now the Biden administration appears to be hitting the brakes. In court filings, government lawyers filed an uncontested motion to postpone the cases related to a potential ban of the popular social media app.
The request also suggests status reports at 60-day intervals, and states the administration plans to conduct its own evaluation of the matter.
"The government will then be better positioned to determine whether the national security threat described in (President Trump's executive orders)...continue to warrant the identified prohibitions," the filing reads.
Joe Biden has previously raised concerns over how the Chinese government may access data that TikTok collects and discussions have reportedly continued between TikTok-owner ByteDance and U.S. security officials.
In an interview with CBS' "Face the Nation" this past Sunday, Biden said China should expect "extreme competition" from the U.S., but that he will not necessarily pursue an adversarial relationship in the way that his predecessor did.
In August last year, President Trump issued a pair of executive orders that would forbid American companies from transacting with ByteDance-owned companies and force ByteDance to divest of its TikTok operations in the U.S. Microsoft, Oracle and Walmart emerged as potential new owners.
The Chinese government retaliated by issuing new rules banning exportation by Chinese companies of certain technologies, which would include TikTok's lauded "For You" algorithm. TikTok also sued the Trump administration.
In mid-September, Oracle confirmed it had been selected by ByteDance to become TikTok's "trusted technology provider," and then-Treasury Secretary Steven Mnuchin said the arrangement would bring 20,000 new jobs to the U.S.
A series of deadline extensions and waivers from U.S. government agencies and courts ensued and multiple federal judges ruled Trump's TikTok ban illegitimate.
On February 18, the U.S. government is due to issue its formal response to TikTok's court challenge against the ban.
In the absence of a ban, ByteDance could still sell TikTok, but anyone negotiating to acquire the company valued at approximately $180 billion, according to Bloomberg, would no longer have the same leverage.
Why is TikTok Facing a Ban? And What May Lie Ahead! www.youtube.com
This story has been updated.
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As Big Tech cracks down on moderation after the Capitol attack and Wall Street braces for more fallout from social media's newfound influence on stock trading,
legislators are eyeing changes to Section 230 of the Communications Decency Act of 1996. On Wednesday, February 10, dot.LA brought together legal perspectives and the views of a founder and venture capitalist on the ramifications of changing the way that social media and other internet companies deal with the content posted on their platforms.
A critic of Big Tech moderation, Craft Ventures General Partner and former COO of PayPal David Sacks called for an amendment of the law during dot.LA's Strategy Session Wednesday. Tyler Newby and Andrew Klungness, both partners at law firm Fenwick, laid out the potential legal implications of changing the law.
David Sacks, Co-Founder and General Partner of Craft Ventures
David Sacks, Co-Founder and General Partner of Craft Ventures<p>David Sacks is co-founder and general partner at Craft. He has been a successful tech entrepreneur and investor for two decades, building and investing in some of the most iconic companies of the last 20 years. David has invested in over 20 unicorns, including Affirm, Airbnb, Bird, Eventbrite, Facebook, Houzz, Lyft, Opendoor, Palantir, Postmates, Reddit, Slack, SpaceX, Twitter and Uber.</p><p>In December 2014, Sacks made a major investment in Zenefits and became the company's COO. A year later, in the midst of a regulatory crisis, the Board asked David to step in as interim CEO of Zenefits. During his one year tenure, David negotiated resolutions with insurance regulators across the country, and revamped Zenefits' product line. By the time he left, regulators had praised David for "righting the ship", and PC Magazine hailed the new product as the best small business HR system.</p><p>David is well known in Silicon Valley for his product acumen. AngelList's Naval Ravikant has called David "the world's best product strategist." David likes to begin any meeting with a new startup by seeing a product demo.</p>
Kelly O'Grady, Chief Correspondent & Host and Head of Video at dot.LA<p>Kelly O'Grady is dot.LA's chief host & correspondent. Kelly serves as dot.LA's on-air talent, and is responsible for designing and executing all video efforts. A former management consultant for McKinsey, and TV reporter for NESN, she also served on Disney's Corporate Strategy team, focusing on M&A and the company's direct-to-consumer streaming efforts. Kelly holds a bachelor's degree from Harvard College and an MBA from Harvard Business School. A Boston native, Kelly spent a year as Miss Massachusetts USA, and can be found supporting her beloved Patriots every Sunday come football season.</p>
Tyler Newby is a partner at Fenwick
Andrew Klungness is a partner at Fenwick
Sam Adams, Co-Founder and CEO of dot.LA
Sam Adams, Co-Founder and CEO of dot.LA<p>Sam Adams serves as chief executive of dot.LA. A former financial journalist for Bloomberg and Reuters, Adams moved to the business side of media as a strategy consultant at Activate, helping legacy companies develop new digital strategies. Adams holds a bachelor's degree from Harvard College and an MBA from the University of Southern California. A Santa Monica native, he can most often be found at Bay Cities deli with a Godmother sub or at McCabe's with a 12-string guitar. His favorite colors are Dodger blue and Lakers gold.</p>
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