Where is EU in this embarrassment? Suppose Margrethe Vestager called and said TikTok, you are banned unless you let a "very european" company take over your business? And by the way. We would like a cut. And would the US still being able to say "national security" if it was fully owned by German business running on servers in some Swiss mountain?
TikTok and Microsoft’s Clock
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Re: TikTok and Microsoft’s Clock
#42"Microsoft fully appreciates the importance of addressing the President’s concerns. It is committed to acquiring TikTok subject to a complete security review and providing proper economic benefits to the United States, including the United States Treasury." => So US Treasury will give MS money to buy TikTok (US market only)? And they have limited time to make this deal? So US Treasury will effectivelly own the US Tik…
At least that partially confirms my long-held suspicion that Skype's acquisition by MS was also made for "national interests", only that they (the US Administration of that time + MS itself) used to cover it up better. The same goes for FB's acquisition of WhatsApp. And people were laughing at Putin in 2012-2013 when he was saying in an interview that the Internet was CIA-controlled, not to mention the derogatory Wes…
Re: TikTok and Microsoft’s Clock
#43Re: TikTok and Microsoft’s Clock
#44The United States loses the moral high ground moving forward and Microsoft gets a blemished gem. The machinations of this deal are unsightly. Just because this is how the game is played in China doesn't mean we have to do it too.
This is nothing new in global politics. Just take a one look at Middle East to see how the world has been since the dawn of human civilization. Not saying it is right, a bit of throwback to the days of yonder perhaps, but I'm not surprised or shocked. Although I'm still doubtful it's going to happen.
In this case, the government is playing the game on both the sell side and the buy side (and in another weird twist appears to be demanding a fee from the buyer?). There isn’t even plausible deniability into the government’s high handedness.
I suspect the evaporation of benefits the US has accrued over the past decades/centuries will be much greater than any short term gains it may see out of this and potentially any other similar future deals.
Re: TikTok and Microsoft’s Clock
#45If this is a national security risk, having Microsoft purchase it is a terrible idea. Will Microsoft install this app next to Xbox Live and Candy Crush on your start menus? Is it going to end up in your startup-apps, launching every time you load your PC, added back to your startup-apps after every update regardless of how many times you remove it from the list?
Re: TikTok and Microsoft’s Clock
#46The United States loses the moral high ground moving forward and Microsoft gets a blemished gem. The machinations of this deal are unsightly. Just because this is how the game is played in China doesn't mean we have to do it too.
“Nice rapidly-growing foreign service you have there. It would be a shame if we called it a ‘national security risk’ and made you sell it to us for pennies on the dime!”
Re: TikTok and Microsoft’s Clock
#47The United States loses the moral high ground moving forward and Microsoft gets a blemished gem. The machinations of this deal are unsightly. Just because this is how the game is played in China doesn't mean we have to do it too.
“Nice rapidly-growing foreign service you have there. It would be a shame if we called it a ‘national security risk’ and made you sell it to us for pennies on the dime!”
Half the world is currently pissed with China. India already banned Tik Tok. The US could have used what is left of its diplomatic corps (devastated in the past few years) to encourage other countries such as the NATO nations, 5 eyes countries and other allies to threaten to ban Tik Tok and the likes of China didn’t resolve their security concerns. And the vast majority of them would have agreed, essentially forcing China to do this or something similar without the US losing its moral high ground, and gaining strength and respect amongst its allies instead of looking like a street level rent a mob type.
The same with the TPP. The US under this administration and tried hard to punish China, and basically, over the past few years has managed to slightly alter the fortunes of 2 individual companies, at a huge cost to its local farm sales, and hasn’t gained much in return at all, while hurting China only marginally.
If they had remained in the TPP, they would have had a much greater effect across Chinese companies (since it wouldn’t require cherry picking individual companies and acting specially for each of them) and the influence would have been levered since it would have come from pretty much every neighbor of China, and further, would have come at little cost to the US.
What’s most disturbing about these actions isn’t so much the actions themselves, but the fact that they have traded away so much of the US’s reputation built over generations, cost the US so much in rep and straight up cash, and has barely got it anything in return. And all this while much more effective alternatives which would have cost the US nothing but instead would have helped it strengthen its position in the world, existed by acting through its alliances.
Re: TikTok and Microsoft’s Clock
#48The United States loses the moral high ground moving forward and Microsoft gets a blemished gem. The machinations of this deal are unsightly. Just because this is how the game is played in China doesn't mean we have to do it too.
Re: TikTok and Microsoft’s Clock
#49Earlier quoted context omitted.
> So, to summarise: the president of the United States is openly advocating applying illegal real estate extortion/bribery practices to major M&A deals with geopolitical implications Well, yes, because he's spent his entire career doing that and now he's President. See the case the NY AG is building against him.
Is it any different than just having a tax on purchasing foreign companies? It's the same as a tax on purchasing foreign goods, which is already in place for goods from China in the form of tariffs.
Re: TikTok and Microsoft’s Clock
#50It continues to be damning that the leadership of Microsoft did not buy Vine [1] from Twitter in 2017 for pennies on the dollar before Vine was shutdown. Vine was very popular, and a lot of people were very disappointed when it was shutdown back when Twitter was bleeding a lot cash. [1] https://en.wikipedia.org/wiki/Vine_(service)
Vine's top content creators were demanding to be paid, which was completely intolerable to the whole SV mindset.