So is there going to be a US TikTok and a World TikTok?
TikTok’s Chinese owner offers to forego stake to clinch U.S. deal – sources
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Re: TikTok’s Chinese owner offers to forego stake to clinch U.S. deal – sources
#52So how will this work? Will there be 2 apps? Tiktok US and Tiktok for the rest of the world?
The split would likely be Douyin (TikTok China) vs. TikTok for the rest of the world. The business is already structured that way- ByteDance operates Douyin directly but TikTok operates through a subsidiary.
They are divesting the US operations though. So basically different owners for US, China and the rest of the world.
Re: TikTok’s Chinese owner offers to forego stake to clinch U.S. deal – sources
#53US is doing with China what China did with them. American VCs and business men used to criticize and mock Chinese government for it. Since US is following the footsteps of China, I wonder whether Chinese will be doing what US VCs did?
Oh how the turn tables
Re: TikTok’s Chinese owner offers to forego stake to clinch U.S. deal – sources
#54Earlier quoted context omitted.
Or even a TikTok China and TikTok for the rest of the world? (Considering the ban of TikTok in India and the perceived threat of TikTok amongst several other countries as well.)
"TikTok China" exists already, it's Douyin. It was there first (2016). Bytedance created TikTok as "international" Douyin in 2017, then merged it with musical.ly.
Hidden forces behind Toutiao: China’s content king - https://www.ycombinator.com/library/3x-hidden-forces-behind-... is an interesting read.
Re: TikTok’s Chinese owner offers to forego stake to clinch U.S. deal – sources
#55Earlier quoted context omitted.
America has been acting neutral for last decades, especially last 15 years where China has asymmetrically taken advantage of American companies. China is getting a taste of their own medicine and I am fine with that.
This is essentially admitting that the free market lost and doesn't work anymore. Because the free market has clearly decided that it likes TikTok, even enough to share its data with the company. I don't think people realize how significant this might be.
Countries intervening in private industry for national security reasons is a pretty ancient phenomenon. I doubt many people will see it as a fatal compromise of free market principles.
Re: TikTok’s Chinese owner offers to forego stake to clinch U.S. deal – sources
#56I'd like to see any YC users come by and claim the US has a "free market" at this point.
The hypocrisy in YC isn't this.
It's that people argue the virtues of "free-markets" while simultaneously arguing the most valuable thing any business should build is a "moat".
It the utter acknowledgment that avoiding/prevent competition is the way to be successful, while arguing that free markets enforce competition.
Its blatantly obvious that network effects, exclusivity contracts and monopolies exist. And well and market dominance leads to more dominance by purchasing any future competitive business. And yet claim most success comes from marker efficiency.
Taking a non-tech example. Madden is getting closer to a 20 year exclusive license NFL on consoles. No game can compete with made up teams and rosters. The product is stagnant, innovation a dump and yet this continuous aspect of "free-market" is ignored.
Re: TikTok’s Chinese owner offers to forego stake to clinch U.S. deal – sources
#57As I currently recide in a country famous for blocking access to websites, I follow these developments as closely as I can.
Whatever happens, it's probably going to be a recipe on how to force all foreign providers to act the way the local government wants. These days the theme is forcing on the ant-gay stance, they managed to force Netflix a show that had a gay character in it. Besides that charade, they passed laws to control the social media in the name of national security and citizens rights. This comes after Twitter exposed and deleted a pro government troll army.
Anyway, if this happens Facebook, Google, Twitter etc. can start looking into the future of Instagram for Iran, Twitter for Turkey, Google for EU - all forced to partner with a local company and the global versions inaccessible.
I am sure that the US ban of TikTok would be well rationalised but the US could have chosen the EU approach of enforcing US data being kept on US soil. Sad that US choose the Chinese approach of right our of banning(because somehow becoming like China is the way of topping the authoritarian Chinese order). Something tells me that this is not about national security.
Welcome to the world of partitioned internet in the name of national security. A boring dystopia where the less fre world no longer has a role model.
I hope you enjoy the life where the government is telling you what you can and can't use so that the country stays safe. Brilliant system that served all kind of authoritarian regimes.
Good luck to the start-ups, from now on you are looking to a future where you will have to strike a deal with each country you want to operate.
"Your app just crossed the TOP100 mark in the AppStore, would be shame if something happens to it because of national security. Maybe you should sell it to our crony while it's still worth something"
Re: TikTok’s Chinese owner offers to forego stake to clinch U.S. deal – sources
#58I wonder how long this deal has actually been in the works, and Trump, seemingly privy to this knowledge, saw a good opportunity to take credit by pre-empting the inevitable announcement of a sell off. Why else would he announce his plans of an executive order instead of just doing it?
Re: TikTok’s Chinese owner offers to forego stake to clinch U.S. deal – sources
#59US is doing with China what China did with them. American VCs and business men used to criticize and mock Chinese government for it. Since US is following the footsteps of China, I wonder whether Chinese will be doing what US VCs did?
Careful there, someone is going to dismiss your completely valid observation because it happens to be a geopolitical context.
Re: TikTok’s Chinese owner offers to forego stake to clinch U.S. deal – sources
#60That's one way to avoid a US ban.
Even if they were honest and absolutely no data ever went back to China after this (not likely), that’s still billions flowing right back to a Chinese company straight out of America if they’re purchased. If Trump is sincere about his America first claims, he’d have a good reason to ban it and make the product worthless regardless.
There are billions flowing between China and the US for all sorts of reasons. I've seen arguments that complete divestment from China is the morally right thing to do, but it's hard to imagine how it could be economically advantageous for the US from an "America first" perspective.