Trump backs proposed deal to keep TikTok operating in US

The TikTok logo is displayed in front of a TikTok office in Culver City, California. (AFP / GETTY IMAGES NORTH AMERICA / MARIO TAMA)
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Updated 20 September 2020

Trump backs proposed deal to keep TikTok operating in US

  • TikTok said Oracle and Walmart could acquire up to a cumulative 20% stake in the new company in a financing round to be held before an initial public offering of stock
  • Trump said if completed the deal would create a new company likely to be based in Texas, which will be hiring at least 25,000 workers

NEW YORK: President Donald Trump said Saturday he’s given his “blessing” to a proposed deal that would see the popular video-sharing app TikTok partner with Oracle and Walmart and form a US company.
Trump has targeted Chinese-owned TikTok for national security and data privacy concerns in the latest flashpoint in the rising tensions between Washington and Beijing. The president’s support for a deal comes just a day after the Commerce Department announced restrictions that if put in place could eventually make it nearly impossible for TikTok’s legions of younger fans to use the app.
Trump said if completed the deal would create a new company likely to be based in Texas.
“I have given the deal my blessing,” he said. “If they get it done, that’s great. If they don’t, that’s OK too.”
Trump said the new company will be hiring at least 25,000 people and making a $5 billion contribution to a fund dedicated to education for Americans. “That’s their contribution that I’ve been asking for,” he said.
TikTok said Oracle and Walmart could acquire up to a cumulative 20% stake in the new company in a financing round to be held before an initial public offering of stock, which Walmart said could happen within the next year. Oracle’s stake would be 12.5%, and Walmart’s would be 7.5%, the companies said in separate statements.
The deal will make Oracle responsible for hosting all TikTok’s US user data and securing computer systems to ensure US national security requirements are satisfied. Walmart said it will provide its ecommerce, fulfillment, payments and other services to the new company.
“We are pleased that the proposal by TikTok, Oracle, and Walmart will resolve the security concerns of the US administration and settle questions around TikTok’s future in the US,” TikTok said in a statement.
Trump has been demanding that the US operations of TikTok be sold to a US company or else be shut down. He’s also been targeting WeChat, another Chinese-owned app.
The administration contends that the user data collected by the two apps could be shared with the Chinese government. On Saturday, Trump said the US-based TikTok “will have nothing to do with China.” TikTok says it has 100 million US users.
On Friday, the US Commerce Department said it would bar TikTok from US app stores as of late Sunday. Further restrictions that would prevent TikTok from accessing essential Internet services in the country would go into effect on Nov. 12. Commerce said Saturday that it will delay the barring of TikTok from US app stores until Sept. 27 at 11:59 p.m.
Commerce is imposing similar restrictions on WeChat, although all of the restrictions on that app are set to go into effect Sunday night at 11:59 p.m.
Earlier Saturday, WeChat users asked a US judge to block the government’s actions, saying they would restrict free speech. WeChat is an all-in-one app with instant-messaging, social media and other communication tools. The US government argued that it is not restricting free speech because WeChat users still “are free to speak on alternative platforms that do not pose a national security threat.”
US Magistrate Judge Laurel Beeler asked lawyers for the government and WeChat users whether the prohibitions would cripple WeChat as soon as the clock ticked from Sunday night into Monday morning without a resolution. An attorney for the government said they would likely lead to a “degradation” of WeChat over time.
Judge Beeler did not rule immediately on the motion.
WeChat has millions of US users who rely on the app to stay in touch and conduct business with people and companies in China and around the world. In court filings, the founder of the Mental Health Association for Chinese Communities, who is a US citizen in California, said that the group’s primary tool to reach out and provide services to Chinese Americans is WeChat.
“Since many of the Chinese community members we serve are not fluent in English, WeChat is the only online tool that they rely on,” Elaine Peng said.
The Trump administration’s aggressive tactics are part of its latest attempt to counter the influence of China, a rising economic superpower. Since taking office in 2017, Trump has waged a trade war with China, blocked mergers involving Chinese companies and stifled the business of Chinese firms like Huawei, a maker of phones and telecom equipment.
China-backed hackers, meanwhile, have been blamed for data breaches of US federal databases and the credit agency Equifax, and the Chinese government strictly limits what US tech companies can do in China.
China’s ministry of commerce condemned the US moves and urged it to stop what it called bullying behavior. It also said China may take “necessary measures” to protect Chinese companies.
The US Treasury Department said Saturday that TikTok’s deal still needs to close with Oracle and Walmart, and it also needs documentation and conditions to be approved by the Committee on Foreign Investment in the United States.
That, of course, also leaves the potential for more roller coasters of emotion for TikTok users, such as Haley Hoffman Smith, a 24-year-old who moved to Manhattan this year to pursue her dream of becoming a talk-show host. She said she had just hit 100,000 followers on TikTok and was crushed on Friday to hear it may be headed for a shutdown.
“TikTok is an inextricable part of my dream chasing story,” she said, “and to lose it forever would not only be an inconvenient setback, but an absolute heartbreak.”
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AP Business Writers Tali Arbel, Matt O’Brien and Barbara Ortutay contributed.


Publicis Groupe veteran Kamal Dimachkie leaves as new successor is named

Updated 20 October 2020

Publicis Groupe veteran Kamal Dimachkie leaves as new successor is named

  • Dimachkie’s career spans three decades of leadership and accomplishment in international and regional markets
  • Shoueiry founded the agency’s Social Content Lab and played a key role in cultivating digital design thinking across the region

RIYADH: Publicis Groupe MEA today announced the departure of Kamal Dimachkie, chief operating officer, Publicis Communications, UAE and Lower Gulf. Dimachkie is a senior executive who joined Leo Burnett in February 1985. The company has appointed Samer Shoueiry to assume the role in conjunction with his current responsibilities as chief digital officer, Publicis Communications, Middle East from Dec. 1. Dimachkie’s decision to leave comes after 33 years with the company. He will leave his current position on Dec. 31 and continue to act in a consultative capacity until June 2021 in order to ensure a smooth transition.

Dimachkie’s career spans three decades of leadership and accomplishment in international and regional markets including the US, Lebanon, Saudi Arabia, Bahrain, Kuwait and the UAE.

Raja Trad, executive chairman at Publicis Groupe MEA said: “I respect Kamal’s decision. He has been a friend and a colleague for over three decades, and not just I but the entire Publicis Groupe family will miss him. His tenure at the Groupe has been characterized by a clear commitment to values that are central to our philosophy. Kamal’s adept leadership propelled the agency to new heights — we won more than 250 accolades and added numerous international and local clients to our roster. I want to thank him for his immeasurable contribution to the Groupe and wish him all the best for his professional future.”

Dimachkie added: “Leo Burnett and Publicis Groupe have been my life for the past 33 years, and I am proud to have been a part of a glorious journey during which I have had the opportunity to serve the company in different roles in six countries, to have contributed to numerous clients and raised the bar internally and within the industry. Part of this has been the joy of working with a wonderful team and leadership, whom I have partnered with, learnt from and shall forever call my friends and brothers in arms. I am grateful to have lived the glory days of advertising with one of the best agencies in the world and to have worked with some of the most inspiring and creative people. I look forward to working with Samer on the upcoming transition and wish him success in his new role.”

Shoueiry, who will take on Dimachkie’s role, has over 21 years of experience across business, design and innovation. He has consistently delivered a robust performance in Publicis’ Experience Design and Experience Strategy, founded the agency’s Social Content Lab and played a key role in cultivating digital design thinking across the region.

Commenting on his appointment, Trad said: “Samer has a record of leadership and value creation, deep experience in generating groundbreaking brand experiences, as well as a focus on strategic design, innovation excellence and a strong technological footing. I look forward to continuing to work closely with him to drive our digital transformation in the region and support the spread of innovation through investments in our people, technology, platforms and tools. Together, we will ensure that we continue to move our business forward in the Connected Age through a data-led, digital-first approach.”

Shoueiry further added: “Kamal has built a strong foundation for future growth, including strengthening our team and expanding our scope of work. The current climate has accelerated digital transformation globally, and we are looking at a future where online and offline coexist to augment consumer experience in an interconnected brand universe. E-commerce is a necessity, digital equities are your flagship stores, search and social your new outdoor. With this new beginning, I will focus on further strengthening our creative strategy-to-results development to offer the best consumer-centric experiences and build brand value.”