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New Chinese Tech Regulations Complicates The TikTok Deal

What Happened: Chinese authorities have imposed new regulations on technology exports which could complicate matters for the TikTok deal, The Wall Street Journal reported on Saturday.As per the latest directives from the Chinese authorities, computing and data-processing technologies, voice and speech recognition, content recommendation and text analysis technologies cannot be exported without a proper license from local Chinese authorities.Why It's Important: ByteDance, the owner of the video-sharing app TikTok, is under tremendous pressure from the White House to quickly divest its U.S. operations of Tiktok. The company is also exploring legal options to challenge the executive order from President Trump which bars any U.S. companies to deal or get into any form of transactions with the Chinese company.President Trump, however, gave a green light to Microsoft Corporation (NASDAQ: MSFT) to go ahead with the TikTok deal only if the White House gets a sizeable cut from it.The U.S. security officials earlier raised concerns about the user data in possession of ByteDance fearing they would be passed on to Chinese Intelligence agencies.It's interesting to note that along with Microsoft, Walmart Inc. (NYSE: WMT) and Oracle Corp. (NYSE: ORCL) also expressed interest to acquire the U.S. operations of the video-sharing app. Much of their interest can be attributed to the algorithm of ByteDance's AI-driven-content-recommendation engine, according to WSJ.What Next: The addictive video feed is the most attractive feature of the app as it analyzes the user behavior and recommends them suitable videos keeping them hooked to the app. Amid the recent regulations, ByteDance would not be able to deliver the user feed algorithm to the acquiring company without obtaining a license from the local Chinese authorities.Related Link: TikTok Sale Looks Imminent As Microsoft Teams With Walmart, Oracle Finalizes BidSee more from Benzinga * TikTok Preparing Legal Challenge To Trump Order: Report * ByteDance Gets 90 Days To Divest Its US Stake In TikTok * Uncertainty Surrounds Microsoft's Potential TikTok Acquisition(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. Read More...

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="What Happened: Chinese authorities have imposed new regulations on technology exports which could complicate matters for the TikTok deal, The&nbsp;Wall Street Journal reported on Saturday.” data-reactid=”19″>What Happened: Chinese authorities have imposed new regulations on technology exports which could complicate matters for the TikTok deal, The Wall Street Journal reported on Saturday.

As per the latest directives from the Chinese authorities, computing and data-processing technologies, voice and speech recognition, content recommendation and text analysis technologies cannot be exported without a proper license from local Chinese authorities.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Why It’s Important: ByteDance, the owner of the video-sharing app TikTok, is under tremendous pressure from the White House to quickly divest its U.S. operations of Tiktok. The company is also exploring legal options to challenge the executive order from President Trump which bars any U.S. companies to deal or get into any form of transactions with the Chinese company.” data-reactid=”21″>Why It’s Important: ByteDance, the owner of the video-sharing app TikTok, is under tremendous pressure from the White House to quickly divest its U.S. operations of Tiktok. The company is also exploring legal options to challenge the executive order from President Trump which bars any U.S. companies to deal or get into any form of transactions with the Chinese company.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="President Trump, however, gave a green light to Microsoft Corporation&nbsp;(NASDAQ: MSFT) to go ahead with the TikTok deal only if the White House gets a sizeable cut from&nbsp;it.” data-reactid=”22″>President Trump, however, gave a green light to Microsoft Corporation (NASDAQ: MSFT) to go ahead with the TikTok deal only if the White House gets a sizeable cut from it.

The U.S. security officials earlier raised concerns about the user data in possession of ByteDance fearing they would be passed on to Chinese Intelligence agencies.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="It's interesting to note that along with Microsoft, Walmart Inc. (NYSE: WMT) and Oracle Corp. (NYSE: ORCL) also expressed interest to acquire the U.S. operations of the video-sharing app. Much of their interest can be attributed to the algorithm of ByteDance’s AI-driven-content-recommendation engine, according to WSJ.” data-reactid=”28″>It’s interesting to note that along with Microsoft, Walmart Inc. (NYSE: WMT) and Oracle Corp. (NYSE: ORCL) also expressed interest to acquire the U.S. operations of the video-sharing app. Much of their interest can be attributed to the algorithm of ByteDance’s AI-driven-content-recommendation engine, according to WSJ.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="What Next: The addictive video feed is the most attractive feature of the app as it analyzes the user behavior and recommends them suitable videos keeping them hooked to the app. Amid the recent regulations, ByteDance would not be able to deliver the user feed algorithm to the acquiring company without obtaining a license from the local Chinese authorities.” data-reactid=”29″>What Next: The addictive video feed is the most attractive feature of the app as it analyzes the user behavior and recommends them suitable videos keeping them hooked to the app. Amid the recent regulations, ByteDance would not be able to deliver the user feed algorithm to the acquiring company without obtaining a license from the local Chinese authorities.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Related Link: TikTok Sale Looks Imminent As Microsoft Teams With Walmart, Oracle Finalizes Bid” data-reactid=”30″>Related Link: TikTok Sale Looks Imminent As Microsoft Teams With Walmart, Oracle Finalizes Bid

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="See more from Benzinga” data-reactid=”31″>See more from Benzinga

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.” data-reactid=”36″>© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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