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Oracle wins TikTok over Microsoft in Trump-urged bid

Inside Telecom Staff

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Oracle wins TikTok over Microsoft in Trump-urged bid

The owner of TikTok has chosen Oracle over Microsoft as the American tech partner that could help keep the popular video-sharing app running in the U.S., according to a source familiar with the deal who was not authorized to speak publicly about it.

Microsoft announced Sunday that its bid to acquire TikTok’s U.S. operations was rejected, removing the tech giant from the running a week before President Donald Trump promises to follow through with a plan to ban the Chinese-owned app in the U.S. over spying concerns.

TikTok and the White House declined to comment Sunday. Oracle didn’t return a request for comment but has previously declined comment.

Walmart, which had planned to partner with Microsoft on the acquisition, said Sunday it “continues to have an interest in a TikTok investment” and is talking about it with ByteDance and other parties.

The Trump administration has threatened to ban TikTok by Sept. 20 and ordered ByteDance to sell its U.S. business, claiming national-security risks due to its Chinese ownership. The government worries about user data being funneled to Chinese authorities. TikTok denies it is a national-security risk and is suing to stop the administration from the threatened ban.

It’s not clear if the proposed deal will only cover TikTok’s U.S. business, and, if so, how it will be split from the rest of TikTok’s social media platform, which is popular worldwide. ByteDance also owns a similar video app, Douyin, for the Chinese market.

Any deal must still be reviewed by the Committee on Foreign Investment in the United States, known as CFIUS, a U.S. government group chaired by the Treasury Secretary that studies mergers for national-security reasons. The president can approve or deny a transaction recommended by the panel, though Trump has already voiced support for Oracle as a “great company” that could handle the acquisition.

Microsoft said in a Sunday statement that ByteDance “let us know today they would not be selling TikTok’s US operations to Microsoft.”

Microsoft added it was “confident our proposal would have been good for TikTok’s users, while protecting national security interests.” The company said it “would have made significant changes to ensure the service met the highest standards for security, privacy, online safety, and combating disinformation.”

TikTok, which says it has 100 million U.S. users and about 700 million globally, is known for its fun, goofy videos of dancing, lip-syncing, pranks and jokes. It’s recently become home to more political content such as the comedian Sarah Cooper, who drew a large audience by lip-syncing Trump’s own often-disjointed statements from public appearances.

But the app has also raised concerns because of its Chinese ownership. The White House has cracked down on a range of Chinese businesses, including telecom equipment makers Huawei and ZTE and messaging app WeChat, over worries that they would enable Chinese authorities to get U.S. user data. Republican and Democratic lawmakers have raised concerns about censorship and children’s privacy.

TikTok denies that it has shared user data with the Chinese government or that it would do so if asked. The company says it has not censored videos at the request of Chinese authorities and insists it is not a national-security threat.

TikTok has sued to stop the ban, but not the sale order. The negotiations have been complicated by several factors, including Trump’s repeated demands that the U.S. government should get a “cut” of any deal, a stipulation and role for the president that experts say is unprecedented.

In addition, the Chinese government in late August unveiled new regulations that restrict exports of technology, likely including the artificial intelligence system TikTok uses to choose which videos to spool up to its users. That means ByteDance would have to obtain a license from China to export such technology to a foreign company.

The deal had come together rapidly after the administration ramped up its threats against TikTok this summer, despite TikTok’s efforts to put distance between its app and its Chinese ownership. It installed former Disney executive Kevin Mayer as its American CEO, but he resigned in August after just a few months on the job, saying the “political environment has sharply changed.”

Both Microsoft and Oracle are known more for their business software offerings than for those intended for consumers.

Oracle primarily makes database software. It competes with tech giants such as Microsoft and Amazon that provide cloud services as well as business-software specialists like Salesforce.

Some analysts see Oracle’s interest in a consumer business as misguided. Oracle should focus on enterprise-market acquisitions and not invest in a consumer app like TikTok that doesn’t fit with the rest of its business, said Jefferies analyst Brent Thill, who compares the idea to Delta Airlines buying a motorcycle company. “It doesn’t make any sense,” he said.

Thill suggested that TikTok competitors like Facebook and Snapchat should be “cheering on Oracle” as a buyer, because Oracle wouldn’t “add a lot of value to the app.”

Oracle co-founder Larry Ellison is unusual among tech executives for his public support of President Donald Trump, hosting a fundraiser for him in February at his Rancho Mirage, California, estate. The company also hired a former top aide to Vice President Mike Pence; its CEO, Safra Catz, also served on Trump’s transition team.

The president said on Aug. 18 that Oracle was “a great company” that “could handle” buying TikTok. He declined to state his preference between Oracle and Microsoft as buyers.

By MATT O’BRIEN and TALI ARBEL AP Technology Writers.

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Discovery’s reality-heavy streaming service launches in Jan.

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Discovery is joining the increasingly crowded streaming fray with its own reality-focused service Discovery Plus that will include shows from the Food Network, HGTV, TLC and its other networks. It launches Jan 4.

The service will cost $5 a month with ads and $7 a month without ads. By comparison, the ad-free Disney Plus costs $7 a month and Netflix’ most popular plan costs $14 a month.

Each account will include up to five user profiles and support four concurrent streams. Discovery said the service will be available on “major platforms,” connected TVs, web, mobile and tablets, but it didn’t specify which services would carry it.

Discovery CEO David Zaslav first announced the streaming service in late 2019, but did not provide details until now.

Discovery has built a reality-TV empire with popular channels that feature reality programming, including the Discovery Channel, HGTV, Food Network, TLC, Investigation Discovery and others. Hit shows have included TLC’s “90-Day Fiance,” HGTV’s “Fixer-Upper” and Guy Fieri’s “Diners, Drive-Ins and Dives” on the Food Network.

The service will offer some originals like “90-Day Fiance” spinoff “90-Day Diaries” and “Long Island Medium” spinoff “Long Island Medium: There in Spirit.”

Verizon customers will get a year free of the service, similar to the deal that Verizon did when Disney Plus launched in late 2019.

Discovery Plus joins a slew of new streaming services started to challenge traditional TV providers and dominant streaming services like Hulu and Netflix over the past year, including Disney Plus, Apple TV Plus, HBO Max and Comcast’s Peacock service. CBS recently rebranded its CBS All Access service as Paramount Plus, relaunching in 2021.

The service will role out in 25 countries in 2021 including Italy, Spain, U.K. and Ireland as well as India.


By The Associated Press undefined

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UK authorizes Pfizer coronavirus vaccine for emergency use

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UK authorizes Pfizer coronavirus vaccine for emergency use

Drugmakers Pfizer and BioNTech said Wednesday they’ve won permission for emergency use of their COVID-19 vaccine in Britain, the world’s first coronavirus shot that’s backed by rigorous science — and a major step toward eventually ending the pandemic.

The move allows Britain to become one of the first countries to begin vaccinating its population as it tries to curb Europe’s deadliest outbreak.

“The vaccine will be made available across the U.K. from next week,” the Department of Health and Social Care said in a statement. The National Health Service “has decades of experience in delivering large scale vaccination programs and will begin putting their extensive preparations into action to provide care and support to all those eligible for vaccination.”

Other countries aren’t far behind: Regulators in the United States and the European Union also are vetting the Pfizer shot along with a similar vaccine made by competitor Moderna Inc. British regulators also are considering another shot made by AstraZeneca and Oxford University.

British media have reported that hospitals in England have been told to get ready to start doing vaccinations for medical workers as early as next week.

Pfizer said it would immediately begin shipping limited supplies to the U.K. — and has been gearing up for even wider distribution if given a similar nod by the U.S. Food and Drug Administration, a decision expected as early as next week.

But doses everywhere are scarce, and initial supplies will be rationed until more is manufactured in the first several months of next year.

Pfizer CEO Albert Bourla called the U.K. decision “a historic moment.”

“We are focusing on moving with the same level of urgency to safely supply a high-quality vaccine around the world,” Bourla said in a statement.

While the U.K. has ordered enough Pfizer vaccine for 20 million people, it’s not clear how many will arrive by year’s end. Adding to the distribution challenges, the Pfizer vaccine must be stored at ultra-cold temperatures. Two doses three weeks apart are required for protection.

The U.K. government says frontline health care workers and nursing home residents will be first in line to get vaccinated, followed by older adults.

But Prime Minister Boris Johnson has warned that even once the vaccine begins to be used, “we must first navigate a hard winter” of restrictions to try to curb the virus until there are enough shots to go around.

Every country has different rules for determining when an experimental vaccine is safe and effective enough to use. Intense political pressure to be the first to roll out a rigorously scientifically tested shot colored the race in the U.S. and Britain, even as researchers pledged to cut no corners. In contrast, China and Russia have offered different vaccinations to their citizens ahead of late-stage testing.

The shots made by U.S.-based Pfizer and its German partner BioNTech were tested in tens of thousands of people. And while that study isn’t complete, early results suggest the vaccine is 95% effective at preventing mild to severe COVID-19 disease. The companies told regulators that of the first 170 infections detected in study volunteers, only eight were among people who’d received the actual vaccine and the rest had gotten a dummy shot.

“This is an extraordinarily strong protection,” Dr. Ugur Sahin, BioNTech’s CEO, recently told The Associated Press.

The companies also reported no serious side effects, although vaccine recipients may experience temporary pain and flu-like reactions immediately after injections.

But experts caution that a vaccine cleared for emergency use is still experimental, and the final testing must be completed. Still to be determined is whether the Pfizer-BioNTech shots protect against people spreading the coronavirus without showing symptoms. Another question is how long protection lasts.

The vaccine also has been tested in only a small number of children, none younger than 12, and there’s no information on its effects in pregnant women.


By LAURAN NEERGAARD AP Medical Writer


The Associated Press Health and Science Department receives support from the Howard Hughes Medical Institute’s Department of Science Education. The AP is solely responsible for all content.

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Salesforce buying work-chat service Slack for $27.7 billion

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Salesforce buying work-chat service Slack for $27.7 billion

Business software pioneer Salesforce.com is buying work-chatting service Slack for $27.7 billion in a deal aimed at giving the two companies a better shot at competing against longtime industry powerhouse Microsoft.

The acquisition announced Tuesday is by far the largest in the 21-year history of Salesforce. The San Francisco company was one of the first to begin selling software as a subscription service that could be used on any internet-connected device instead of the more cumbersome process of installing the programs on individual computers.

Salesforce’s flamboyant founder and CEO Marc Benioff hailed the “cloud computing” concept as the wave of the future to much derision initially.

But software as a service has become an industry standard that has turned into a gold mine for longtime software makers. Microsoft for one has developed its own thriving online suite of services, known as Office 365, which includes a Teams chatting service that includes many of the same features as Slack’s 6-year-old application.

Slack in July filed a complaint in the European Union accusing Microsoft of illegally bundling Teams into Office 365 in a way that blocks its removal by customers who may prefer Slack.

Microsoft also has been posing a threat to Salesforce’s main products, a line-up of tools that help other companies manage their customer relationships.

“For Benioff, this is all about Microsoft,” Wedbush Securities analyst Dan Ives said of Tuesday’s deal. “It’s just clear Microsoft is moving further and further away from Salesforce when it comes to the cloud wars.”

Benioff left no doubt he considered the deal to be a major coup, after losing out to Microsoft in 2016 when the two companies were both vying to buy the professional networking service LinkedIn.

“It’s a match made in heaven,” Benioff said during an ebullient conference call. “We see in Slack a once-in-a-generation company and platform. It’s a central nervous system for so many companies.”

Salesforce has been building on its success in recent years to diversify into other fields, largely through a series of acquisitions that included its previous largest deal, a $15.7 billion purchase of data analytics specialist Tableau Software last year.

Many of the deals have been financed with Salesforce’s stock, which is worth nearly seven times more than it was a decade ago to lift the company’s current market value to $220 billion. Salesforce is using its stock to pay for roughly half of the Slack purchase, with the rest being covered with some cash, with some of the money being borrowed during a time of extraordinarily low interest rates.

Slack, on the other hand, hasn’t proven as popular with investors, even though its service that publicly launched in 2014 is being increasingly used by companies and government agencies looking for more nimble alternatives than email. Before news reports of a potential deal with Salesforce surfaced last week, Slack’s stock was still hovering around its initial listing price of $26 when the company went public nearly 18 months ago.

“This is a stellar exit strategy for Slack,” said Kate Leggett, an analyst at Forrester Research. “Microsoft Teams is eating Slack’s lunch.”

Slack co-founder Stewart Butterfield will be hoping this sale works out better than when another company he started, photo sharing service Flickr, was sold to Yahoo 15 years ago. Flickr got lost in the shuffle at Yahoo amid years of turmoil before it was finally sold again in 2018 to SmugMug.

In his next act after leaving Flickr, Butterfield decided to focus on gaming with a startup called Tiny Speck that launched in 2009. A few years later, he shifted to the instant messaging service whose name was an acronym for “Searchable Log of All Conversation and Knowledge.”

Leggett predicted Salesforce would benefit from owning Slack because it will add a popular collaboration tool to its own software suite, which is focused on managing customer relationships for businesses and government agencies. She said the need for customer-relations agents and other Salesforce users to swarm around a topic and collaborate remotely has only grown with the coronavirus pandemic that has sent so many office workers home and got many hooked on new online tools.

If all goes smoothly, Salesforce hopes to take control of Slack sometime from May to July next year.

Slack, which is free for people who use the basic version, found quick adoption in the tech industry for its ease of use and its fostering of a more casual mode of conversation than email. The company stopped releasing its daily user count after topping 12 million last year, focusing instead on paid customers, which Butterfield said in March have shown a “massive outpouring of interest” because of the way the pandemic has forced people to work from home.

“I think the pandemic’s played a massive role” in paving the way for the deal, Ives said. “The Zooms, the Slacks, the Microsoft Teams, that’s going to be a new part of the workforce.”

Ives said Benioff was also running out of time to catch up to Microsoft, which remains a secondary player in Salesforce’s core customer-relations-management business, known as CRM, but way ahead in providing a broader array of cloud-based services.

Slack and Salesforce are headquartered about a block away from each other in San Francisco. Slack’s office is in the shadow of the 62-story Salesforce Tower, the tallest building in Northern California.

“I get to look right out my window and you know what I see? Slack,” Benioff said.


SAN RAMON, Calif. (AP) — By MICHAEL LIEDTKE and MATT O’BRIEN AP Technology Writers.

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