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<ul><li>ByteDance, TikTok’s parent company, is throwing its gauntlet into smartphone arena.</li><li>Company’s phone offering plans to include pre-installed apps.</li><li>China to be target market for the company’s hardware offering, which means a US or India launch is unlikely.</li></ul>ByteDance, the parent company of the massively popular social media app, TikTok, is looking to <a href="https://www.businessinsider.in/tiktoks-bytedance-launching-new-smartphone-soon-like-facebook-and-snap/articleshow/69525632.cms">launch its own phone</a> that would come with pre-installed apps. Talking to <a href="https://www.forbes.com/sites/mnunez/2019/07/30/tiktok-owner-bytedance-is-making-a-phone-for-china-not-the-us/#10b9cc952200">Forbes</a>, a ByteDance spokesperson said that the company was following up on “plans that were in place before ByteDance began working with Smartisan, the focus is on meeting the needs of Smartisan's existing customer base in China." Following the runaway success of TikTok, ByteDance is now the world’s <a href="https://www.businessinsider.in/tiktok-downloads-top-facebook-in-china-and-india/articleshow/69334254.cms">most valuable startup</a>, dethroning Uber in the process. On its own, TikTok is bigger than Twitter and Snapchat with more monthly installs than Facebook, Instagram and YouTube. ByteDance acquired patents from <a href="https://www.businessinsider.in/tiktoks-bytedance-launching-new-smartphone-soon-like-facebook-and-snap/articleshow/69525632.cms">Smartisan</a> - a niche Chinese smartphone company - earlier this year in a deal that saw some employees also transfer to the Beijing-based ByteDance in what it called a “normal flow of talent”. The acquired entity, Smartisan is known for its over-the-top media events where people pay to see its flamboyant CEO Luo Yonghao’s sales pitch and watch musical performances from some of China’s top music artists. TikTok launched in China in 2016 and saw as many as 300 million monthly active users by 2018 before moving to international markets and replicating that success to the tune of more than 500 million active users worldwide. Despite a strong user base in the US with 14.3 million unique visitors, the new smartphone will not launch in the US and will exclusively be sold in the Chinese market, which means an India launch is also unlikely. As of now, the company will only focus on its Chinese user base for now and there are no plans to compete with the likes of <a href="https://www.businessinsider.in/best-samsung-phones-under-10000-in-india/articleshow/69752354.cms">Samsung</a> or <a href="https://www.businessinsider.in/miscellaneous/the-iphone-has-been-struggling-and-it-doesnt-sound-like-this-years-launch-will-be-what-apple-needs-to-save-it/slidelist/70512913.cms">Apple.</a> See also: <a href="https://www.businessinsider.in/tiktoks-bytedance-launching-new-smartphone-soon-like-facebook-and-snap/articleshow/69525632.cms">TikTok’s company is now looking to make smartphones — a move Facebook and Snap tried and failed</a> <a href="https://www.businessinsider.in/tiktok-and-helo-may-be-banned-by-indian-government/articleshow/70275179.cms">TikTok and Helo are accused of unlawful activities in India triggering talks of a possible ban</a> <a href="https://www.businessinsider.in/tiktok-arrest-suicide-and-accidental-death-result-of-digital-addication/articleshow/69826567.cms">A fresh wave of bad news haunts TikTok</a>

TikTok plans to ring as ByteDance enters smartphone race

<div class="KonaFilter image-container display-table"><div><div class="image on-image">AP Photo/Jessica HillThe phone will reportedly come preloaded with Bytedance apps, including short-form video app TikTok.</div></div></div><ul class="summary-list"><li><a href="https://www.businessinsider.com/category/tiktok">TikTok</a> parent company <a href="https://www.businessinsider.com/category/bytedance">Bytedance</a> confirmed to <a href="https://www.reuters.com/article/us-china-bytedance-smartphone/chinas-bytedance-after-smartisan-deal-says-developing-smartphone-idUSKCN1UO16W">Reuters</a> Monday that it's working on a smartphone.</li><li>The smartphone has been in development for seven months and is being created in part with device maker Smartisan.</li><li><a href="https://www.businessinsider.com/tiktoks-parent-develops-smartphone-2019-5">News broke in May</a> that Bytedance was looking to develop it own smartphone preloaded with the company's apps, including TikTok and other platforms.</li><li><a href="https://www.businessinsider.com/?hprecirc-bullet">Visit Business Insider's homepage for more stories</a>.</li></ul>The Chinese company behind the hit social app TikTok has confirmed it's been working on its own smartphone.Bytedance is developing the phone is partnership with Chinese device marker Smartisan, <a href="https://www.reuters.com/article/us-china-bytedance-smartphone/chinas-bytedance-after-smartisan-deal-says-developing-smartphone-idUSKCN1UO16W">Reuters reports</a>. That confirms <a href="https://www.businessinsider.com/tiktoks-parent-develops-smartphone-2019-5">rumors reported in May</a> that Bytedance was looking to create a smartphone to build out the company's business beyond social platforms and apps. Plans for the phone indicate that it would come preloaded with Bytedance apps, including <a href="https://www.businessinsider.com/tiktok-app-online-website-video-sharing-2019-7">short-form video app TikTok</a> and news aggregation app Jinri Toutiao. Through its app development, Bytedance has become to most valuable private startup in the world at $75 billion.Read more: <a href="https://www.businessinsider.com/tiktoks-parent-develops-smartphone-2019-5">TikTok's parent company wants to make a smartphone</a>The phone has been in development for the last seven months, Chinese financial news outlet Caijing reported.Bytedance founder and CEO Zhang Yiming has been "dreaming" of creating a phone, and is leading the project, Reuters reports. As part of the Bytedance-Smartisan partnership, some Smartisan employees transferred to Bytedance to work on the phone.Bytedance did not respond to Business Insider's request for comment on the reports.It remains to be seen how successful Bytedance's smartphone will be, since reports of similar projects from Facebook and <a href="https://www.businessinsider.com/amazon-may-experiment-with-new-smartphone-after-fire-phone-disaster-2019-5?r=US&amp;IR=T">Amazon have surfaced</a> and since been abandoned. Additionally, Smartisan is a relatively niche smartphone maker in the Chinese market, so it's possible the Bytedance phone would only go to market there. <div class="margin-top"> <h3>NOW WATCH: <a href="https://www.businessinsider.com/navy-area-51-autec-in-the-bahamas-2016-10">The Navy has its own Area 51 and it's right in the middle of the Bahamas</a></h3> <div> </div> </div>

Bytedance, the Chinese company behind TikTok, says it's been working on its first smartphone

<ul class="summary-list"><li>The United States government said it will ban the wildly popular smartphone app <keyword id="6762469" type="UNKNOWN" weightage="60" keywordseo="TikTok">TikTok</keyword> from September 20. </li><li>The threat comes amid ongoing negotiations between TikTok's parent firm <keyword id="3749909" type="PERSON" weightage="60" keywordseo="Bytedance">ByteDance</keyword> to sell the app's US operations. President Trump has accused TikTok of being used to collect data on Americans for the Chinese government.</li><li>In an order published Friday morning, the US <keyword id="113018" type="ORGANIZATION" weightage="60" keywordseo="Department-of-Commerce">Department of Commerce</keyword> gave TikTok until September 20 — this Sunday — before banning its ability to transact business in the US.</li><li>From Sunday this potentially means the app will no longer be able to be updated through either Apple or Google's digital storefronts.</li><li>The app may also outright stop functioning on November 12 as the US government will bar internet service providers from "enabling the functioning or optimization of the mobile application in the US." </li></ul>Starting this Sunday, September 20, the wildly popular video app TikTok will no longer be available through Apple and Google's digital storefronts. Moreover, if you've already got the app, future updates won't be allowed.That's according to <a href="https://www.commerce.gov/news/press-releases/2020/09/commerce-department-prohibits-wechat-and-tiktok-transactions-protect">an order published by the US Department of Commerce</a> on Friday morning which says that starting on September 20, 2020, TikTok will be barred from software updates and distribution in the US.For Apple and Google smartphone users in the US, that means TikTok could disappear from their respective app stores, and any updates to the app may not be processed. If you already have the app on your phone, however, it won't just disappear.The order also bans companies in the US from "enabling the functioning or optimization of the mobile application in the US," from November 12, which would effectively stop existing users from continuing to use TikTok.Whether any of this will happen remains to be seen.The order follows the Trump adminstration's wider efforts to force a sale of TikTok's US business to a US firm in the name of national security. President Trump has repeatedly insisted that TikTok, because it is owned and operated by a Chinese company, is collecting information from users in the US and feeding that information to the Chinese government. ByteDance has reportedly negotiated some kind of deal over TikTok's US operations with US tech giant Oracle, which is awaiting the green light from the <keyword id="6356037" type="ORGANIZATION" weightage="60" keywordseo="white-house">White House</keyword>. If this deal is approved and confirmed by Sunday, it could obviate the order entirely, <a href="https://uk.reuters.com/article/idUKL1N2GF039">Reuters reported</a>.With over 100 million users in the US, TikTok has grown as the coronavirus pandemic swept across the country in 2020. Representatives for Apple and Google did not immediately respond to a request for comment as of publishing.Got a tip? Contact Business Insider senior correspondent Ben Gilbert via email (<a href="mailto:bgilbert@businessinsider.com">bgilbert@businessinsider.com</a>), or Twitter DM (<a href="https://twitter.com/RealBenGilbert">@realbengilbert</a>). We can keep sources anonymous. Use a non-work device to reach out. PR pitches by email only, please.

The US is about to ban TikTok. Here's what that means for users.

<ul class="summary-list"><li><keyword id="6762469" type="UNKNOWN" weightage="60" keywordseo="TikTok">TikTok</keyword>'s is facing choppy waters in the United States, as President <keyword id="6354484" type="PERSON" weightage="60" keywordseo="Donald-Trump">Donald Trump</keyword> and his administration amp up threats to ban the app in the US.</li><li>Although the Trump administration has painted a ban on TikTok as a simple action, experts told Business Insider it's not so easy.</li><li>Experts say there are other actions Trump could take, such as adding TikTok to the same banned "Entity List" that Huawei is on, or by declaring a "national emergency" that would give him "broad authority" over foreign business transactions.</li><li>These other possible actions Trump could take, however, raise concerns about violations of First Amendment rights, as well as how effective they would be in actually restricting TikTok in the US.</li></ul>The continuing geopolitical dogfight over TikTok has seen President Donald Trump saying he may "ban" TikTok. But the reality, multiple experts say, is that any ban would take extraordinary legal steps — and still not actually keep Americans from using the app. A nationwide ban on an app would be unprecedented, but that hasn't stopped Trump from repeatedly saying he would take action against viral video-sharing app TikTok, <a href="https://www.businessinsider.com/trump-told-reporters-air-force-one-ban-tiktok-2020-7">most recently insisting to reporters</a> aboard Air Force One he has the "authority" to do so "with an executive order or that."Because TikTok's parent company, <keyword id="3749909" type="PERSON" weightage="60" keywordseo="Bytedance">ByteDance</keyword>, is based in <keyword id="1334" type="COUNTRY" weightage="60" keywordseo="China">China</keyword>, questions have circulated around how much access and influence the Chinese government is afforded over the app's user data and content moderation. The Trump administration escalated those concerns in early July when officials, including the president, expressed a desire to ban TikTok in the US, citing national-security risks.Several experts who spoke with Business Insider said there's no simple way to impose an outright ban, but there are workarounds the administration can pursue to get to a similar outcome. Still, those routes are fraught with concerns about violating First Amendment rights and questions of how effective they would actually be in blocking TikTok."He can't outright 'ban' TikTok itself," <a href="https://lawschool.udmercy.edu/_files/pdf/faculty-staff/cv/C_V_Langvardt_Kyle.pdf">Kyle Langvardt</a>, a law professor at the University of Detroit, told Business Insider. "But he can interfere so heavily with TikTok's business that an American TikTok clone will replace it."Even on a technical level, a ban is daunting. Removing TikTok from the Apple and Google smartphone app stores would prevent new downloads, but it wouldn't affect the millions of users using TikTok in the US. One alternative would be to block communication between TikTok servers and US users at the "network level," as <a href="https://www.theverge.com/2020/7/9/21315983/trump-pompeo-ban-tiktok-bytedance-chinese-social-media-national-security-censorship-methods">The Verge's Adi Robertson reports</a> — the same method the Chinese government uses to block popular platforms, like Facebook and Google, behind <a href="https://www.businessinsider.com/major-us-tech-companies-blocked-from-operating-in-china-2019-5#facebook-1">its "Great Firewall" of internet censorship</a> — but that's an unprecedented legal move in the US. <h2>So, what can the Trump administration do?</h2><a href="https://kjk.com/professionals/mark-rasch/">Mark Rasch</a>, a cybersecurity lawyer and former Justice Department prosecutor, said TikTok's status as an app and "not a 'product' or a 'company' in the traditional sense" raises "significant practical concerns" about what the Trump administration can achieve using executive orders and existing national-security policy.The US government has never before taken such definitive action against a smartphone application. Three law professors who spoke with Business Insider argued that because TikTok <a href="https://www.pbs.org/wgbh/nova/article/is-code-free-speech/">is classified as "software,"</a> the platform could be covered by the First Amendment. This classification would make a <keyword id="7319188" type="UNKNOWN" weightage="60" keywordseo="TikTok-ban">TikTok ban</keyword> an "unconstitutional restriction of speech," according to <a href="https://www.ericgoldman.org/">Eric Goldman</a>, a law professor at Santa Clara University.That leaves only a few options for how Trump's threat of a ban could actually be put into practice. Originally, reports suggested the administration was considering an executive order that would <a href="https://www.businessinsider.com/trump-bytedance-sell-tiktok-us-operations-china-security-bloomberg-2020-7">instruct ByteDance to "divest" TikTok's operations in the US</a>. That could only be carried out at the conclusion of the ongoing federal review of TikTok's national-security risks, which the <a href="https://www.businessinsider.com/cfius-how-to-pronounce-committee-foreign-investment-us-2020-8">Committee on Foreign Investment in the United States</a> (<keyword id="1402972" type="ORGANIZATION" weightage="60" keywordseo="CFIUS">CFIUS</keyword>) has been conducting <a href="https://www.businessinsider.com/exclusive-us-opens-national-security-investigation-into-tiktok-sources-2019-11">since late 2019.</a>The CFIUS review focuses on <a href="https://www.businessinsider.com/tiktok-app-online-website-video-sharing-2019-7">ByteDance's 2017 acquisition of Musical.ly</a>, a popular social network that was later merged into TikTok in the US. <a href="https://fas.org/sgp/crs/natsec/RL33388.pdf">A 1988 law</a> allows the president to cite CFIUS findings on national-security risks as a reason to shut down foreign business transactions involving companies conducting interstate commerce in the US.<a href="https://www.cnbc.com/2018/03/13/trump-blocks-broadcoms-qualcomm-takeover-concerns-about-china-5g.html">Trump has twice used</a> this authority to block deals in which tech corporations from <a href="https://www.nytimes.com/2020/03/06/business/economy/trump-administration-blocks-chinese-acquisition-cfius.html">China</a> and <a href="https://www.washingtonpost.com/technology/2020/07/31/tiktok-trump-divestiture/">Singapore</a> were poised to take over US-based companies. And last year, <a href="https://www.reuters.com/article/us-grindr-m-a-exclusive/exclusive-us-pushes-chinese-owner-of-grindr-to-divest-the-dating-app-sources-idUSKCN1R809L">CFIUS ordered the Chinese parent company</a> of the gay dating app Grindr to sell the platform because the deal had not been submitted to CFIUS for review when it happened — the same justification for allowing CFIUS to review of the ByteDance and Musical.ly deal.CFIUS has yet to release its findings on TikTok, but an executive order based on those findings wouldn't be the same as a US-wide ban. Experts say there are two other options Trump could pursue to achieve an outcome similar to a ban. One would involve adding TikTok and ByteDance to the US Commerce Department's <a href="https://www.bis.doc.gov/index.php/policy-guidance/lists-of-parties-of-concern/entity-list">Entity List,</a> the blacklist of foreign companies — which includes other <a href="https://www.reuters.com/article/us-usa-china-huaweitech/chinas-huawei-70-affiliates-placed-on-us-trade-blacklist-idUSKCN1SL2W4">major Chinese tech companies</a> — banned from doing business with US entities.Chinese smartphone makers Huawei and ZTE are already on the list after the<a href="https://www.zdnet.com/article/paranoia-will-destroy-you-why-chinese-tech-isnt-spying-on-us/"> US government accused both of plotting to spy on the US</a> via their products. But without other smartphone apps on the list to set precedent for what could happen with TikTok, experts say enforcing any restrictions could be difficult."It's unclear if simply adding TikTok to that list would be enough," says <a href="https://www.cs.umd.edu/~golbeck/">Jen Golbeck</a>, an information studies professor at the University of Maryland. "The concerns about <keyword id="113687" type="ORGANIZATION" weightage="60" keywordseo="national-security">national security</keyword> are theoretical, but there's no evidence that those concerns have played out. Singling out TikTok and banning it would almost certainly be arbitrary and capricious."The president could also deploy the International Emergency Economic Powers Act. The IEEPA gives Trump the authority to declare a national emergency, <a href="https://fas.org/sgp/crs/natsec/R45618.pdf">during which he has "broad authority"</a> to regulate foreign economic transactions. In <a href="https://www.whitehouse.gov/presidential-actions/executive-order-securing-information-communications-technology-services-supply-chain/">an executive order implemented last year</a>, Trump used the IEEPA to give the administration the ability to interfere in any business transaction involving "information and communications technology or services" that "otherwise pose an unacceptable risk to the national security of the United States or the security and safety of United States persons."That could apply to TikTok. However, Langvardt, the University of Detroit law professor <a href="https://fas.org/sgp/crs/natsec/R45618.pdf">points to part of the IEEPA</a> where it specifically says the president cannot regulate "information or informational materials" exchanged between Americans and foreign companies.<h2>ByteDance faces an uncertain future, but American TikTok users don't</h2>Even if a ban would be technically and legally difficult, the growing uncertainty in TikTok's future has led ByteDance to explore alternatives to pursue to order to avoid a ban in the US, where the app has at least 80 million monthly users. TikTok was most recently valued between an estimated $30 billion and $50 billion, according to <keyword id="6355005" type="UNKNOWN" weightage="60" keywordseo="news">news</keyword> reports.A group of ByteDance's US investors, including Sequoia Capital and General Atlantic, <a href="https://www.businessinsider.com/tiktok-bytedance-us-investors-consider-buying-majority-stake-report-2020-7">expressed early interest in buying a majority stake</a> in TikTok, <a href="https://www.theinformation.com/articles/bytedance-investors-discuss-tiktok-purchase">The Information</a> reported last month. But <a href="https://www.theinformation.com/articles/microsofts-talks-to-buy-tiktok-follow-headway-for-investor-plan">The Information later reported</a> that those talks had failed because of concerns that such a takeover "wouldn't pass muster with the Trump administration."In its wake, Microsoft has quickly emerged as a serious buyer of TikTok's US operations. <a href="https://www.businessinsider.com/microsoft-continuing-talks-to-acquire-tiktoks-us-operations-2020-8">Microsoft confirmed Sunday</a> it was in "discussions" with ByteDance regarding a potential acquisition.Trump <a href="https://www.businessinsider.com/trump-tiktok-ban-sold-by-sept-15-microsoft-2020-8">has set a deadline of September 15</a> for ByteDance to hash out a deal with a US buyer. Afterward, Trump insists his administration will then take steps to ban the app in the US — but he's yet to clearly explain exactly how that ban would work. Until then, American TikTok users should have no fear of a future where they can't waste an evening scrolling through endless content on their For You page.

No, Donald Trump can't 'ban' TikTok

<ul class="summary-list"><li>On the face of it, <keyword id="10387" type="CITY" weightage="60" keywordseo="Microsoft">Microsoft</keyword>'s decision to explore the possibility of spending billions on a <keyword id="6762469" type="UNKNOWN" weightage="60" keywordseo="TikTok">TikTok</keyword> acquisition seems like a weird business decision.</li><li>Under CEO Satya Nadella, Microsoft has doubled down on cloud computing and productivity software, leaving the Xbox console as its last major consumer brand.</li><li>TikTok — a mega-popular viral video app with 80 million daily active users in the US — doesn't seem to tie into that strategy at all.</li><li>But Nadella has earned the benefit of the doubt: Microsoft's acquisitions of GitHub, LinkedIn, and "Minecraft" maker Mojang have gone very well, and TikTok could be the company's one real shot at establishing a beachhead in social media and competing with Facebook.</li><li>If the deal goes through, however, Microsoft will have to balance keeping TikTok's users happy with the need to make a return on its investment — which would be difficult enough without the political drama surrounding the app.</li><li>This is an <keyword id="6356002" type="UNKNOWN" weightage="60" keywordseo="opinion">opinion</keyword> column. The thoughts expressed are those of the author.</li></ul>By now you've probably heard that <a href="https://www.businessinsider.com/microsoft-continuing-talks-to-acquire-tiktoks-us-operations-2020-8">Microsoft has confirmed that it's in talks to potentially acquire viral video app TikTok's US operations</a>, the latest development in a <a href="https://www.businessinsider.com/timeline-tiktok-microsoft-potential-acquisition-2020-8">drama that began in June when the GOP began floating the idea of a ban</a>.It's not clear how much Microsoft would pay, should the acquisition go through. But TikTok as a whole said to be <a href="https://www.reuters.com/article/us-bytedance-tiktok-exclusive/exclusive-bytedance-investors-value-tiktok-at-50-billion-in-takeover-bid-sources-idUSKCN24U1M9">recently valued at as much as $50 billion</a>, so it's likely that Microsoft would pay more for than the $26.2 billion it shelled out for LinkedIn in 2016, its largest acquisition to date.Let me just cut straight to the point: This is a really strange move for Microsoft, given that TikTok ties in loosely at best to the <a href="https://www.businessinsider.com/microsoft-ceo-satya-nadella-company-culture-change-growth-mindset">strategy that's made the company so successful under the past six years of CEO Satya Nadella's leadership</a>.That's not necessarily a bad thing, given the scale of the potential reward. The <a href="https://www.wsj.com/articles/microsoft-aims-for-a-deal-to-buy-tiktoks-u-s-business-11596418842">Wall Street Journal reports that China-based ByteDance</a>, TikTok's current owner, believes that the app has the potential to grow into a social-media juggernaut that could one day challenge Facebook directly. And the political hubbub around <keyword id="3749909" type="PERSON" weightage="60" keywordseo="Bytedance">ByteDance</keyword> and TikTok could mean this is Microsoft's one and only chance get into this market.If Microsoft can't pull it off, not only will it have spent all that money for nothing, it runs the risk of backfiring. If Microsoft were to bungle taking over TikTok, it would alienate the social-media network's estimated 80 million daily active American users — many, if not most, who are teenagers — and lose an entire generation of consumers.<h2>Satya Nadella's acquisition win record earns him the benefit of the doubt, but Microsoft doesn't have a fabulous track record with consumers</h2>To a certain degree, Nadella has earned the benefit of the doubt: His signature acquisitions — LinkedIn, code-sharing service GitHub, and "Minecraft" maker Mojang — have all been so far very successful under the Microsoft corporate umbrella, with all of them operating as largely-independent subsidiaries."Nadella has essentially had the golden touch since becoming CEO and its hard to argue with any bet MSFT has made over the last five years," Wedbush Securities analyst Dan Ives wrote in a note to clients on Monday morning.It, therefore, seems unlikely that Microsoft would go through the trouble of talking to President Donald Trump about a TikTok acquisition if it didn't know exactly what it was getting into. One has to assume that Nadella has at least an inkling of how to keep TikTok successful while also ensuring it makes back the eye-watering amount it would spend acquiring TikTok.Still, the fact remains that under Nadella, Microsoft has doubled down on cloud computing and productivity, placing a huge emphasis on the Microsoft Azure cloud and the Office 365 productivity suite. That strategy has paid dividends, with Microsoft's stock up some 33% this year to hit a $1.6 trillion market cap.And for all of Microsoft's success in the corporate world, Nadella's reign has seen the company make some significant retreats in the consumer sphere. Most recently, <a href="https://www.businessinsider.com/microsoft-satya-nadella-close-retail-stores-mixer-strategy-2020-7">Microsoft turned the lights out at Mixer, its rival to Amazon's Twitch live-streaming service (which, incidentally, started with the acquisition of a startup called Beam), and shuttered its retail stores</a>. Before that, it killed <a href="http://static3.businessinsider.com/microsoft-discontinuing-groove-music-pass-2017-10">Groove Music Pass, a Spotify competitor</a>.But the biggest example came in 2015, Nadella unwound the disastrous 2013 purchase of smartphone maker Nokia, <a href="https://www.businessinsider.com/satya-nadella-just-undid-steve-ballmers-last-big-mistake-2015-7">taking a $7.3 billion writedown on a deal that had cost Microsoft $7.6 billion</a> — a startling, but necessary, reflection of the fact that Microsoft's Windows phones were never going to catch up to iPhone and Android. In 2017, <a href="https://www.businessinsider.com/microsoft-windows-10-mobile-what-comes-next-2017-10">Microsoft killed off Windows 10 Mobile</a>, probably the last version ever of Windows for smartphones.The biggest purely-consumer brand Microsoft has left is Xbox. And while TikTok could have some sort of tie-in potential there, perhaps by way of an Xbox console integration to share short gameplay video clips, Mixer's failure is still fresh enough that the company might be wary of pushing that aspect too hard.<h2>The rewards are increased relevancy and a serious toehold in the market ...</h2>All of that is to say that Microsoft is staring down the barrel of spending billions of dollars to serve consumers, a market segment that has largely ignored most of the company's non-gaming overtures.Again, that's not necessarily a bad thing. TikTok's immense popularity could be an attractive beachhead for Microsoft to make a go at consumer social media, even if it would be essentially starting from scratch. Ives writes that "while Xbox and gaming have been successful, MSFT with this deal would be making an aggressive bet to transform its consumer strategy with a major social media bet."Another hint as to the thinking here is that Nadella has previously hinted that he sees Microsoft's enduring relevance as a priority. In <a href="https://www.microsoft.com/en-us/Investor/events/FY-2017/fab2017-satyanadella.aspx">2017, Nadella told Wall Street analysts</a> that he prides himself that after over four decades in business, Microsoft still makes regular appearances on Techmeme, a popular Silicon Valley news aggregator.Plus, there's a very solid chance that <a href="https://www.businessinsider.com/microsoft-tiktok-acquisition-analyst-donald-trump-2020-7">Microsoft would come out of the deal hailed by American TikTok users as a hero, saving it from President Donald Trump's threat of a ban</a>. That goodwill could soften fears that Microsoft's stewardship would change (or ruin) what users already like about it.<h2>But getting it wrong could hurt Microsoft's reputation with the very consumers it's trying to win over</h2>To my mind, however, there are three major business risks for Microsoft, both linked to its institutional inexperience with social apps like TikTok.The first is the kind of reputational risk that comes any time a big company buys a beloved property. From Disney buying "Star Wars" to Yahoo acquiring Tumblr, these kinds of acquisitions create a heightened sense of scrutiny, as fans become extra-vigilant for signs of change under the new management. And there are few apps with fan-bases as dedicated as TikTok.If the goal is to make Microsoft more relevant to consumers, getting TikTok wrong would do the opposite, souring all those users on the company for a long time.The second, closely related threat, comes down to one word: Facebook."If TikTok is the next Instagram-like model (which we believe it is) then if MSFT passes up on this asset it would be missing a golden opportunity," Ives writes. "However, if TikTok becomes the next Snapchat and has a host of user growth and monetization issues in the future, then this acquisition could detract from the valuation over time given massive competition from Facebook and others."So while Microsoft has the potential here to become a serious social-media player, the market is fickle and the business models are tricky. With Facebook getting into the game with <a href="https://www.businessinsider.com/instagram-reels-lure-tiktok-creators-cash-2020-7">Instagram Reels</a>, and others preparing their own assaults on TikTok's business, Microsoft could find itself signed up for a tougher fight than anticipated.Finally, and least predictably, is the antitrust factor. While Microsoft has so far avoided regulatory scrutiny, including <a href="https://www.businessinsider.com/how-microsoft-avoided-this-weeks-big-tech-hearing-2020-7">a notable absence at the Big Tech antitrust hearing last week</a>, acquiring TikTok could drag the company into the Trump administration's crosshairs amid escalating China tensions. That could cause headaches that far outweigh whatever benefits TikTok brings.<h2>Ultimately, it's a weird move for Microsoft, but with big potential upside</h2>The bottom line here is that no, TikTok doesn't fit in with anything Microsoft is already doing. But that might be precisely why Microsoft is so interested in the first place, giving the company a shot at accelerating from zero to social-media juggernaut and establishing its bona fides as a consumer company outside of gaming.There are few companies quite like TikTok, however, and none in recent memory that carry as much baggage or face the same kind of competition or scrutiny from all corners.For every challenge that Nadella has met and conquered, this will be one of the toughest, and almost certainly the riskiest. Pulling it off will further secure his legacy as chief executive, accomplishing yet another thing at Microsoft that might have been unthinkable in the not-so-distant past. With this much money on the table, however, failure would be likely to come with real consequences.

Microsoft could pay billions for TikTok. It's a tremendously risky move that will put CEO Satya Nadella's strategy to the ultimate test.

<ul class="summary-list"><li><keyword id="10879" type="CITY" weightage="60" keywordseo="YouTube">YouTube</keyword> is rolling out a <keyword id="6762469" type="UNKNOWN" weightage="60" keywordseo="TikTok">TikTok</keyword> competitor called YouTube Shorts that will allow users to create 15-second videos. A beta version is being released in India this week.</li><li>The move comes as Oracle confirms it has made a deal with Bytedance, TikTok's China-based parent company, that is designed to keep the popular app in service in the US.</li><li>The deal would end the Trump administration's long fight to force TikTok to sever ties to China over national security concerns. </li><li>YouTube joins Facebook in launching a TikTok rival — the social network giant launched its Instagram Reels feature in early August.</li></ul><keyword id="6355629" type="DEFINITION" weightage="60" keywordseo="google">Google</keyword>'s YouTube announced Monday that it is rolling out YouTube Shorts "is a new short-form video experience for creators and artists who want to shoot short, catchy videos using nothing but their mobile phones," according to a <a href="https://blog.youtube/news-and-events/building-youtube-shorts">company blog post.</a> Shorts videos will be 15 seconds or less and will allow users to use a new, multi-segment camera to stitch multiple clips together as well as the option to record video with music from a selection of songs, similar to how users can create TikTok videos. Shorts has reportedly been in the works for a while, according to an April <a href="https://www.theinformation.com/articles/youtube-plans-shorts-to-rival-tiktok">report from The Information</a>, but Google <a href="https://www.businessinsider.com/youtube-tiktok-rival-shorts-video-sharing-app-google-firework-2020-4">did not confirm</a> the new feature at the time. YouTube did not immediate respond to Business Insider's request for comment. Shorts will get a beta release in India this week for testing. <a href="https://www.businessinsider.com/india-bans-tiktok-dozens-of-other-chinese-apps-security-concerns-2020-6">India banned TikTok</a> as well as dozens of other <keyword id="6354741" type="UNKNOWN" weightage="60" keywordseo="Apps">apps</keyword> owned by China-based firms in June, citing national security concerns.Shorts' launch comes just as tech giant Oracle <a href="https://www.businessinsider.com/tiktok-oracle-confirms-proposal-submitted-us-government-trusted-technology-partner-2020-9">confirmed it has submitted a proposal</a> to be the "trusted technology provider" in the US for TikTok's parent company, ByteDance. The deal comes after pressure from the Trump administration for TikTok to sever ties to China over national security concerns.Google's parent company Alphabet was one of <a href="https://www.businessinsider.com/tiktok-acquisition-potential-buyers-us-operations-investors-microsoft-walmart-oracle-2020-8">a number of companies</a> <a href="https://news.bloomberglaw.com/tech-and-telecom-law/alphabet-weighed-buying-small-tiktok-stake-as-part-of-group-bid">reportedly interested</a> in taking stake in TikTok. TikTok currently runs on Google's cloud-computing software. YouTube isn't the only tech firm that has launched a TikTok rival — Facebook rolled out its own <a href="https://www.businessinsider.com/instagram-reels-tiktok-competitor-short-video-us-launch-explainer-2020-7">Instagram Reels</a> in early August. The feature allows users to create short-form video content on the <keyword id="6354632" type="UNKNOWN" weightage="60" keywordseo="social-media">social media</keyword> site. Snapchat last month also <a href="https://www.businessinsider.com/snapchat-tiktok-feature-play-music-over-videos-2020-8">launched a new feature</a> that allows users to overlay recorded videos with popular songs, similar to how TikTok operates.

YouTube is launching Shorts, a short-form video feature for smartphones that looks a lot like TikTok

<ul class="summary-list"><li>The wildly popular smartphone apps TikTok and WeChat will be banned in the US starting on September 20, the US government announced on Friday morning.</li><li>CFIUS, the same Treasury group that initated those investigations, is now looking into "Fortnite" maker <keyword id="349789" type="COMPANY" weightage="60" keywordseo="Epic-Games">Epic Games</keyword> and "League of Legends" maker <keyword id="2850099" type="COMPANY" weightage="60" keywordseo="Riot-Games">Riot Games</keyword> due to their associations with the Chinese conglomerate <keyword id="212412" type="COMPANY" weightage="60" keywordseo="Tencent">Tencent</keyword>, <a href="https://www.bloomberg.com/news/articles/2020-09-17/tencent-s-game-investments-draw-u-s-national-security-scrutiny">Bloomberg reported</a>.</li><li>Tencent, which owns WeChat, wholly owns Riot Games and owns a 40% stake in <keyword id="6399901" type="AGENCY" weightage="60" keywordseo="epic">Epic</keyword> Games. </li></ul>After taking action against the wildly popular smartphone apps TikTok and WeChat, President Trump's administration appears to be setting its sights on the <keyword id="6357332" type="UNKNOWN" weightage="60" keywordseo="Gaming">gaming</keyword> studios behind two of the biggest games in the world: "Fortnite" and "League of Legends."The same government body that investigated TikTok and WeChat is now looking into Epic Games and Riot Games, <a href="https://www.bloomberg.com/news/articles/2020-09-17/tencent-s-game-investments-draw-u-s-national-security-scrutiny">according to a new Bloomberg report</a>. Both companies received letters from the Committee on Foreign Investment in the US (CFIUS), the report states, regarding how they handle security for American user data, the report says.The issue appears to be the two companies' relationship with Chinese conglomerate Tencent. Tencent owns a 40% stake in Epic Games, based in Cary, North Carolina, and wholly owns Riot Games, based in Los Angeles, California. Epic is most well-known for "Fortnite," but also operates other popular games, including "Rocket League." Riot is most well-known for "League of Legends" and, more recently, "Valorant." Both companies operate games with hundreds of millions of players.Tencent itself is far from a bit player in the world of gaming — it's quietly <a href="https://www.businessinsider.com/what-is-tencent-games-explainer-2019-8">the biggest game company in the world</a>. Aside from its significant stake in Epic and outright ownership of Riot Games, Tencent has investments in Supercell, Ubisoft, Activision, and other notable game publishers. The company is already facing scrutiny from the US government for its ownership of WeChat, one of two major apps run by Chinese companies that were banned in a federal order on Friday morning.Starting this Sunday, September 20, the wildly popular video app TikTok and the messaging and commerce app WeChat will no longer be available through Apple and Google's digital storefronts.Moreover, if you've already got the apps on your phones, future updates won't be allowed, under the text of that order.That's according to an order published by the US Department of Commerce on Friday morning which says that starting on September 20, 2020, TikTok will be barred from software updates and distribution in the US. WeChat is also being pulled and having its updates stopped, but the order goes a step further: It outright bars internet service providers from working with WeChat, thus nullifying critical components of how the app operates.Whether the order goes into effect on Sunday as planned still remains to be seen.China-based TikTok owner ByteDance has reportedly negotiated some kind of deal over its US operations with Silicon Valley tech giant Oracle, which is awaiting the green light from the White House. If this deal is approved and confirmed by Sunday, it could obviate the order entirely, <a href="https://uk.reuters.com/article/idUKL1N2GF039">Reuters reported</a>. However, that would still seemingly leave WeChat subject to the terms of the order, making the app's future in the US uncertain. The order follows the Trump adminstration's wider efforts to force a sale of TikTok's US business to a US firm in the name of national security. President Trump has repeatedly insisted that TikTok, because it is owned and operated by a Chinese company, is collecting information from users in the US and feeding that information to the Chinese government. Representatives for Epic Games and Riot Games declined to comment. The US Department of the Treasury did not respond to a request for comment.Got a tip? Contact Business Insider senior correspondent Ben Gilbert via email (<a href="mailto:bgilbert@businessinsider.com">bgilbert@businessinsider.com</a>), or Twitter DM (<a href="https://twitter.com/RealBenGilbert">@realbengilbert</a>). We can keep sources anonymous. Use a non-work device to reach out. PR pitches by email only, please.

The Department of the Treasury is reportedly looking into the American companies behind 'Fortnite' and 'League of Legends' over their ties to Chinese tech titan Tencent

Hi! Welcome to the Insider <keyword id="35666" type="COMPANY" weightage="100" keywordseo="advertising">Advertising</keyword> daily for September 15. I'm Lauren Johnson, a senior advertising reporter at Business Insider. <a href="http://newsletter.businessinsider.com/join/4np/insider-advertising">Subscribe here to get this newsletter in your inbox every weekday.</a> Send me feedback or tips at <a>ljohnson@businessinsider.com.</a>Today's news: <keyword id="43340" type="CITY" weightage="60" keywordseo="Oracle">Oracle</keyword> wins proposed deal with TikTok, the <keyword id="9106531" type="UNKNOWN" weightage="60" keywordseo="pitch-deck">pitch deck</keyword> that helped tech firm BrandTotal raise $20 million, and how to get a job at Publicis Groupe-owned Kekst CNC.<h3><a href="https://www.businessinsider.com/tiktok-oracle-confirms-proposal-submitted-us-government-trusted-technology-partner-2020-9"></a></h3><h3><a href="https://www.businessinsider.com/tiktok-oracle-confirms-proposal-submitted-us-government-trusted-technology-partner-2020-9">Oracle wins bid to become TikTok's 'trusted technology provider' in US</a></h3><ul><li><a href="https://www.businessinsider.com/tiktok-oracle-confirms-proposal-submitted-us-government-trusted-technology-partner-2020-9">Oracle confirmed Monday it had struck a deal with ByteDance to be its "trusted technology provider" in the US.</a></li><li>The proposed deal has been submitted to the US government for approval. In a statement, TikTok said, the deal "would resolve the Administration's security concerns."</li><li>The exact terms of the deal are not clear but Oracle's proposed plan is not a straight acquisition of TikTok's US business.</li></ul><h3><a href="https://www.businessinsider.com/tiktok-oracle-confirms-proposal-submitted-us-government-trusted-technology-partner-2020-9">Read the full story here.</a></h3><h3><a href="https://www.businessinsider.com/tech-platform-brandtotal-raised-20-million-with-this-investor-deck-2020-9"><div type="image" title="Screen Shot 2020 09 11 at 10.24.59 AM" height="1400" width="2290" msid="78116746" hostid="261"></div></a></h3><h3><a href="https://www.businessinsider.com/tech-platform-brandtotal-raised-20-million-with-this-investor-deck-2020-9">Read the investor deck that helped tech platform BrandTotal, which works with advertisers like L'Oréal, raise $20 million to date</a></h3><ul><li><a href="https://www.businessinsider.com/tech-platform-brandtotal-raised-20-million-with-this-investor-deck-2020-9">BrandTotal, a marketing analytics company, raised $12 million in a Series B funding round led by Canada's INcapital Ventures, bringing its total funding to $20 million.</a></li><li>Patrick Coffee reports that the firm's deck to investors plays up its technology that can identify "dark" social <keyword id="6354777" type="COMPANY" weightage="60" keywordseo="Media">media</keyword> posts that are only visible to people a brand is targeting.</li><li>According to the deck, advertisers can use the software to figure out where competitors are spending and who they're targeting.</li></ul><h3><a href="https://www.businessinsider.com/tech-platform-brandtotal-raised-20-million-with-this-investor-deck-2020-9">Read the full story here.</a></h3><h3><a href="https://www.businessinsider.com/kekst-cnc-reveals-details-of-its-interview-process-2020-9"><div type="image" title="Yumi Kim" height="1377" width="2515" msid="78116747" hostid="261"></div></a></h3><h3><a href="https://www.businessinsider.com/kekst-cnc-reveals-details-of-its-interview-process-2020-9">Execs at Publicis Groupe's Kekst CNC, the public relations firm behind some of the biggest deals in the world, reveal what they look for in job candidates</a></h3><ul><li><a href="https://www.businessinsider.com/kekst-cnc-reveals-details-of-its-interview-process-2020-9">Sean Czarnecki reports on what it takes to score a job at Publicis Groupe-owned Kekst CNC, one of the most prestigious crisis and financial communications firms.</a></li><li>The firm has more than 250 employees advises on mergers and financial crises. It has advised on famous deals like Kohlberg Kravis Roberts' acquisition of RJR Nabisco.</li><li>At Kekst CNC, where employees have backgrounds in law, journalism, finance, and other professional services industries, candidates can expect to interview with people at their level and undergo a writing test.</li></ul><h3><a href="https://www.businessinsider.com/kekst-cnc-reveals-details-of-its-interview-process-2020-9">Read the full story here.</a></h3><h3>More stories we're reading:</h3><ul><li><a href="https://www.businessinsider.com/youtube-shorts-tiktok-competitor-mobile-video-9-2020">YouTube is launching Shorts, a short-form video feature for smartphones that looks a lot like TikTok</a> (Business Insider)</li><li><a href="https://www.businessinsider.com/mulan-flops-at-china-box-office-in-its-debut-weekend-2020-9">'Mulan' flopped in its box-office debut in China</a> (Business Insider)</li><li><a href="https://www.businessinsider.com/facebook-fights-ireland-privacy-watchdog-us-eu-data-transfer-2020-9">Facebook is challenging an order to block it sending EU data to the US</a> (Business Insider)</li><li><a href="https://www.businessinsider.com/macys-thanksgiving-day-parade-virtual-de-blasio-says-2020-9">Macy's famous Thanksgiving Day Parade will only be happening on TV this year. Here are the biggest changes.</a> (Business Insider)</li><li><a href="https://www.wsj.com/articles/viacomcbs-nears-deal-to-sell-cnet-to-red-ventures-for-500-million-11600057067">ViacomCBS to sell CNET to Red Ventures for $500 million</a> (Wall Street Journal)</li><li><a href="https://www.nytimes.com/2020/09/11/technology/tiktok-vanessa-pappas-bytedance.html">The woman taking over TikTok at the toughest time </a>(New York Times)</li></ul>Thanks for reading and see you tomorrow! You can reach me in the meantime at <a>ljohnson@businessinsider.com</a> and <a href="http://newsletter.businessinsider.com/join/4np/advertising-insider">subscribe to this daily email here.</a>— Lauren

Oracle wins proposed deal with TikTok

Tech leaders dish on how asinine it is to try to describe their companies, products, and worth to Congress

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image">NintendoA new Mario Kart game is on the way.</div></div></div>Good morning! This is the tech news you need to know this Friday.<ol><li><a href="https://www.businessinsider.com/nyc-attorney-general-investigates-facebook-harvesting-users-email-contacts-2019-4?r=US&amp;IR=T">New York's Attorney General is investigating Facebook for harvesting 1.5 million users' email data without their consent</a>. Business Insider revealed the practice earlier this month, which Facebook says was unintentional.</li><li><a href="https://www.businessinsider.com/uber-ipo-price-range-2019-4?r=US&amp;IR=T">Uber is reportedly setting a price range of $44 to $50 for its upcoming IPO</a>. The ride-hailing company could raise between $8 billion to $10 billion in the public listing, according to a report from Bloomberg.</li><li><a href="https://www.businessinsider.com/amazon-system-automatically-fires-warehouse-workers-time-off-task-2019-4?r=US&amp;IR=T">Amazon's warehouse worker tracking system can automatically fire people without a human supervisor's involvement</a>. Amazon confirmed that it fired hundreds of people for productivity reasons in just one facility over one year's time.</li><li><a href="https://www.businessinsider.com/twitter-algorithm-crackdown-white-supremacy-gop-politicians-report-2019-4?r=US&amp;IR=T">Twitter reportedly won't use an algorithm to crack down on white supremacists because some GOP politicians could end up getting banned too</a>. Twitter has come under intense scrutiny in recent months by critics who say the platform doesn't do enough to crack down on harmful white supremacist rhetoric.</li><li><a href="https://www.businessinsider.com/amazon-changes-prime-shipping-one-day-2019-4?r=US&amp;IR=T">Amazon says it's cutting its Prime 2-day shipping guarantee to just one day</a>. The evolution will happen over the next year, and improvements in its supply chain and logistics will result in an $800 million investment.</li><li><a href="https://www.nytimes.com/2019/04/25/technology/facebook-regulation-ftc-fine.html">Sources told the New York Times that the FTC is weighing up what constraints to put on Facebook's privacy practices</a>. One member of the commission reportedly wants to individually punish Mark Zuckerberg.</li><li><a href="https://www.businessinsider.com/datacamp-ceo-jonathan-cornelissen-leave-sexual-misconduct-allegation-2019-4?r=US&amp;IR=T">The CEO of DataCamp is leaving his role "indefinitely" after a sexual misconduct allegation from a former employee came to light</a>. Earlier this month, DataCamp disclosed that an executive made "uninvited physical contact" with an employee in October 2017 which sources told Business Insider was CEO Jonathan Cornelissen. </li><li><a href="https://www.businessinsider.com/mario-kart-tour-beta-sign-up-2019-4?r=US&amp;IR=T">There's a new "Mario Kart" game coming to smartphones this summer, and Android users will be able to try it first for free</a>. Nintendo is now letting Android users sign up for a closed beta test; the beta will run from May 22 to June 4.</li><li><a href="https://www.businessinsider.com/facebook-faces-2-2-billion-fine-email-contacts-harvesting-ireland-data-protection-2019-4?r=US&amp;IR=T">Facebook is looking down the barrel of a $2.2 billion fine for storing millions of passwords insecurely</a>. Europe's default privacy regulator for Facebook will investigate whether Facebook broke the law after the social media company admitting to storing millions of passwords in plain text.</li><li><a href="https://www.businessinsider.com/tiktok-ban-lifted-in-india-app-loses-2-million-users-2019-4?r=US&amp;IR=T">India has lifted its ban on TikTok, but the app lost at least 2 million users</a>. TikTok's Chinese parent company ByteDance claimed the app lost 1 million users a day due to the ban.</li></ol>Have an Amazon Alexa device? Now you can hear 10 Things in Tech each morning. Just search for "Business Insider" in your Alexa's flash briefing settings. You can also <a href="https://newsletter.businessinsider.com/join/free">subscribe to this newsletter</a> here - just tick "10 Things in Tech You Need to Know."Want to dive a bit further into the world of private companies? Build out your research toolkit with Crunchbase Pro. <a href="https://about.crunchbase.com/crunchbase-partners-with-markets-insider/?plan=yearly&amp;promo_code=CrunchbaseBIExclusive?utm_source=markets-insider&amp;utm_medium=markets-insider-blog&amp;utm_campaign=announcment-for-biz-partner&amp;utm_content=pro-buy-page&amp;utm_term=cta">Sign up today for 20%</a> off with the code CrunchbaseBIExclusive. <div class="margin-top"> <h3>NOW WATCH: <a href="https://www.businessinsider.com/fall-into-black-hole-2016-11">Astronomers just captured the first image of a black hole. Here are the horrifying things that would happen if you fell into one.</a></h3> <div> </div> </div>

You Searched For "bytedance smartphone confirmed" and got 10 results

TikTok plans to ring as ByteDance enters smartphone race

BI India Tech Bureau

Bytedance, the Chinese company behind TikTok, says it's been working on its first smartphone

Paige Leskin

The US is about to ban TikTok. Here's what that means for users.

Ben Gilbert

No, Donald Trump can't 'ban' TikTok

Paige Leskin

Microsoft could pay billions for TikTok. It's a tremendously risky move that will put CEO Satya Nadella's strategy to the ultimate test.

Matt Weinberger

YouTube is launching Shorts, a short-form video feature for smartphones that looks a lot like TikTok

Katie Canales

The Department of the Treasury is reportedly looking into the American companies behind 'Fortnite' and 'League of Legends' over their ties to Chinese tech titan Tencent

Ben Gilbert

Oracle wins proposed deal with TikTok

Lauren Johnson

Tech leaders dish on how asinine it is to try to describe their companies, products, and worth to Congress

Hanna Kang,Kayla Gallagher

10 things in tech you need to know today

Isobel Asher Hamilton,Isobel …

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