TikTok scrambles to find a buyer for its US arm to placate Trump after he threatened to ban the Chinese app as it's defiant manager says 'we're not planning on going anywhere' and 'stand with TikTok'
The U.S. general manager of Chinese video sharing app TikTok has said that the service is 'not planning on going anywhere' after President Donald Trump vowed to ban it over security and privacy concerns.
'We're not planning on going anywhere,' said Vanessa Pappas in a video address on TikTok. 'When it comes to safety and security we're building the safest app because it's the right thing to do.'
'We are so proud of all the various communities who call TikTok home,' Pappas said, urging the app's millions of users to 'stand for TikTok.'Pappas claimed that the app employs 15,000 people in America, and plans to add an additional 10,000 jobs in the coming years.
It follows Trump's vow to sign an executive order banning the app, which is expected as soon as Saturday, and has set off a flurry of acquisition speculation, with Microsoft reportedly exploring a deal to take control of the Chinese app in order to allow it to continue operating in the U.S.
Two people familiar with the matter said on Saturday that China's ByteDance has agreed to divest the U.S. operations of TikTok completely in a bid to get White House approval for an acquisition by a U.S. company.
U.S. officials have said TikTok under its Chinese parent poses a national risk because of the personal data it handles.
ByteDance's reported concession will test whether Trump's threat to ban TikTok is a negotiating tactic or whether he is intent on cracking down on a social media app that has up to 80 million daily active users in the United States.
Trump told reporters onboard Air Force One late on Friday that he would issue an order for TikTok to be banned in the United States as early as Saturday.
'Not the deal that you have been hearing about, that they are going to buy and sell... We are not an M&A (mergers and acquisitions) country,' Trump said, referring to earlier reports that ByteDance would seek to retain a minority stake in a potential acquisition.
ByteDance was previously seeking to keep a minority stake in the U.S. business of TikTok, a proposal which the White House had rejected.
Trump told reporters he could ban TikTok in the U.S. as soon as Saturday, while traveling back from Tampa on Air Force One FridayUnder the new proposed deal, ByteDance would exit completely and Microsoft Corp would take over TikTok in the United States, the sources said.
Some ByteDance investors that are based in the United States may be given the opportunity to take minority stakes in the business, the sources added. About 70 percent of ByteDance's outside investors come from the United States.
The White House declined to comment on whether Trump would accept ByteDance's concession. ByteDance in Beijing did not respond to a request for comment
Under ByteDance's new proposal, Microsoft will be in charge of protecting all U.S. user data, the sources said. The plan allows for another U.S. company other than Microsoft to take over TikTok in the United States, the sources added.
Microsoft did not respond to a request for comment.
TikTok, which has some 800million users around the globe, has raised concern among worldwide and U.S. officials for its potential threat to security, along with claims that the Chinese government is using the technology to spy on citizens.
Treasury Secretary Steven Mnuchin on Wednesday said the app was being looked at by the Committee on Foreign Investment in the United States, which reviews deals by foreign acquirers for potential national security risks.
Critics have warned of the potential security threat the app could pose because of its Chinese-based parent firm, ByteDance, which has consistently denied any links to the Chinese government.
The number of American users has been estimated to be as high as 80 million a month - although because the company is not publicly traded, the estimate by outside analysts is impossible to verify.
The platform took the world by storm in 2017, which allows users to create original videos that are shared in the app for millions to see.
The move comes after Joe Biden's presidential campaign banned staffers from using the Chinese video sharing app, citing security and privacy concerns.
In a memo on Monday, Biden's general counsel, Dana Remus, ordered staff members to delete TikTok from both their personal and work phones, and to 'refrain from downloading and using TikTok,' according to Bloomberg.
The memo also bans staff from trading individual stocks without approval from the campaign's general counsel, an unusual step for a presidential campaign.
Earlier this week TikTok pushed back at what it called 'maligning attacks' that call attention to the video app's Chinese connections - a coded reference to the inquiry.
TikTok faces regulatory challenges across the globe, and a potential ban by the U.S. government over suspicions Beijing could force its Chinese owner to turn over user data. Chinese leader Xi Jinping is seen above on Friday
TikTok CEO Kevin Mayer said the attacks were 'disguised as patriotism and designed to put an end to our very presence in the U.S.'
'We are not political, we do not accept political advertising and have no agenda -- our only objective is to remain a vibrant, dynamic platform for everyone to enjoy,' Mayer said.
'TikTok has become the latest target, but we are not the enemy.'
As relations between the United States and China deteriorate over trade, Hong Kong's autonomy, cyber security and the spread of the novel coronavirus, TikTok has emerged as a flashpoint in the dispute between the world's two largest economies.
ByteDance has been considering a range of options for TikTok amid U.S. pressure to relinquish control of the app, which allows users to create short videos with special effects and has become wildly popular with U.S. teenagers.
ByteDance had received a proposal from some of its investors, including Sequoia and General Atlantic, to transfer majority ownership of TikTok to them, Reuters reported on Wednesday. The proposal valued TikTok at about $50 billion, but some ByteDance executives believe the app is worth more than that.
ByteDance acquired Shanghai-based video app Musical.ly in a $1 billion deal in 2017 and relaunched it as TikTok the following year.
ByteDance did not seek approval for the acquisition from the Committee on Foreign Investment in the United States (CFIUS), which reviews deals for potential national security risks. Reuters reported last year that CFIUS had opened an investigation into TikTok.
TikTok's wide popularity among American teens has brought scrutiny from U.S. regulators and lawmakers who fear their personal information could fall into the hands of government officials in Beijing
The United States has been increasingly scrutinizing app developers over the personal data they handle, especially if some of it involves U.S. military or intelligence personnel. Ordering the divestment of TikTok would not be the first time the White House has taken action over such concerns.
Earlier this year, Chinese gaming company Beijing Kunlun Tech Co Ltd sold Grindr LLC, a popular gay dating app it bought in 2016, for $620 million after being ordered by CFIUS to divest.
In 2018, CFIUS forced China's Ant Financial to scrap plans to buy MoneyGram International Inc over concerns about the safety of data that could identify U.S. citizens.
ByteDance was valued at as much as $140 billion earlier this year when one of its shareholders, Cheetah Mobile, sold a small stake in a private deal, Reuters has reported. The startup's investors include Japan's SoftBank Group Corp.
The bulk of ByteDance's revenue comes from advertising on apps under its Chinese operations including Douyin - a Chinese version of TikTok - and news aggregator app Jinri Toutiao, as well as video-streaming app Xigua and Pipixia, an app for jokes and humorous videos.
The Tears of TikTok: Social media stars with millions of followers bid farewell to the popular video-sharing app where they shot to fame after President Trump announces he's banning the Chinese-owned platform
By Karen Ruiz for Dailymail.com
TikTok stars are bidding farewell to the popular video-sharing app after President Trump announced he was banning the Chinese-owned platform on Saturday, amid national security concerns.
The social media outlet, where users can create 15 or 60 second videos, has grown wildly popular among young people over the last year and is estimated to be used by more than 80million Americans.
As news of the ban broke on Friday, TikTok stars rushed to say their final goodbyes to the app where they found celebrity status, asking fans to follow them on Instagram or YouTube instead.
TikTok mega-star Dixie D'Amelio, who boasts 32 million followers, uploaded a video of herself reacting to the demise of the app
Skin care guru Hyram, who gained a following after sharing tips on beauty and skin care products, shared a farewell video to 5.4millon followers on Friday
The D'Amelio sisters, Dixie, 18, and Charli, 20, are among young stars who have made a career from TikTok, after videos of their dances went viral. Charli (left) is currently the most-followed user on the app, with 75.1million fans
Among them was popular skin care guru SkincarebyHyram, who has amassed 5.2 million followers in recent months by sharing videos of his beauty and skincare tips.
'Goodbye y'all. You have all made my life incredible for the last five months. I'll miss our memories, seeing your beautiful faces and all the laughs,' he said in a video.
'Remember: Keep that skin GLOWING.'
TikTok mega-star and singer Dixie D'Amelio, also uploaded a video of herself reacting to the demise of the app, staring blankly at the camera as her song 'Be Happy' played in the background.
Dixie, 18, and sister Charli, 16, from Norwalk, Connecticut, became two of the most popular users on TikTok, which they joined last summer, after videos of their singing and dancing went viral.
Charli, who is yet to react to the ban, is currently the most-followed star on TikTok, boasting 75.1 million followers, while her older sister has 32 million.
The girls have been known to make videos with fellow TikTok celeb Addison Rae, who is followed by 53.3million users.
Addison, 19, took to Twitter after learning the news, asking followers to 'send flowers pls'.
TikTok has propelled the careers of many young social media users including Addison Rae, who is followed by 53.3million users and has created videos with Kardashian sisters
Addison took to Twitter to react to the news of the platform being banned
Earlier this year, 16-year-old Charli D'Amelio (pictured on the Tonight Show with Jimmy Fallon) became the first TikTok star to land a Super Bowl commercial when she appeared in an ad for Sabra Hummus
Popular TikTokers Tony Lopez and Michael Le, also known as JustMaiko, each shared videos asking fans to find him on other social media platforms before the app shuts down for good.
'Well s**t. F**k. Follow me on Instagram I guess. This might be it,' Lopez said.
The shuttering of the app will not only be a loss to the millions of fans joined to participate in viral trends, but it has sparked concerns for those who now use it to make a living.
Tik Tok has produced a community young celebrities, many of whom have been able to make careers as influencers after landing lucrative sponsorships with brands.
Earlier this year, Charli D'Amelio became the first TikTok star to land a Super Bowl commercial when she appeared in an ad for Sabra Hummus.
As for getting paid for social media content, the teenager reportedly charges up to $100,000 per post, according to Cosmopolitan.
Charli and Dixie have also partnered with Hollister and makeup brand Morphe in the last few months alone.
The same goes for Addison Rae, who joined TikTok last July and has since amassed a massive following, with 3.1billion likes, and has been featured in videos with the Kardashians.
Michael Le, also known as JustMaiko (left) has amassed 34.5million followers through his popular dancing videos. He and fellow TikToker Tony Lopez shared videos asking followers to find them on other social media platforms before the app shut down for good'If TikTok actually gets banned please support your favorite creators and follow them on all other social platforms immediately. Your support means more than you know,' one Twitter user said on Friday.
TikTok has raised concern among worldwide and U.S. officials for its potential threat to security, along with claims that the Chinese government is using the technology to spy on citizens.
On Friday, Trump said the popular video-sharing platform could be barred as soon as Saturday by executive order or through use of emergency economic powers.
'As far as TikTok is concerned, we're banning them from the United States' he told reporters on Air Force One as he returned from Florida.
'Well, I have that authority. I can do it with an executive order or that [emergency economic powers].'
Microsoft is 'in talks' to buy Chinese-owned TikTok after Trump said he is considering banning the video app in the US
The New York Times reported on Friday that Microsoft is in talks to acquire TikTok, according to sources who note the deal could 'alter the app's ownership.'
The report comes amid speculation President Trump would mandate Chinese parent company ByteDance to give up ownership of the platform.
TikTok has raised concerns over its potential threat to security, along with claims that the Chinese government is using the technology to spy on citizens.
Microsoft is currently in talks with ByteDance for ownership of TikTok, sources told The New York Times
'We are looking at TikTok. We may be banning TikTok,' Trump told reporters at the White House Friday.
'We are looking at a lot of alternatives with respect to TikTok.'
However, it seems Trumps plans may have hit a snag, as Microsoft is currently in talks with ByteDance for ownership.
Anonymous sources told The New York Times that the deal is in the works, but were unclear where the two firms stood.
However, Bloomberg reports that Trump plans to make a decision to order ByteDance to sell its ownership of TikTok in the US.
TikTok took the world by storm in 2017, which allows users to create original videos that are shared in the app for millions to see.
Currently 80 million Americans use the app, which has raised concerns among the government citing TikTok's data collection of users that may be in the hands of Chinese officials.
Talks of banning the popular video app followed shortly after many users attempted to sabotage Trump's June rally in Tulsa, Arizona.
TikTok users and K-pop fans said they had signed up for the Trump rally in Tulsa - which marked the US President's return to the trail since campaigning was side-lined by the coronavirus crisis.
Trump's campaign declared it had more than a million ticket requests, but in the hours before the event, crowds looked significantly lighter than expected at the 19,000-seat BOK Center. In the end, just 6,200 people attended
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