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    Congress Passed a Bill That Could Ban TikTok. Now Comes the Hard Part.

    After President Biden signs the bill to force a sale of the video app or ban it, the legislation will face court challenges, a shortage of qualified buyers and Beijing’s hostility.A bill that would force a sale of TikTok by its Chinese owner, ByteDance — or ban it outright — was passed by the Senate on Tuesday and is expected to be signed quickly into law by President Biden.Now the process is likely to get even more complicated.Congress passed the measure citing national security concerns because of TikTok’s Chinese ties. Both lawmakers and security experts have said there are risks that the Chinese government could lean on ByteDance for access to sensitive data belonging to its 170 million U.S. users or to spread propaganda.The proposed law would allow TikTok to continue to operate in the United States if ByteDance sold it within 270 days, or about nine months, a time frame that the president could extend to a year.The measure is likely to face legal challenges, as well as possible resistance from Beijing, which could block the sale or export of the technology. It’s also unclear who has the resources to buy TikTok, since it will carry a hefty price tag.The issue could take months or even years to settle, during which the app would probably continue to function for U.S. consumers.“It’s going to be a royal mess,” said Anupam Chander, a visiting scholar at the Institute for Rebooting Social Media at Harvard and an expert on the global regulation of new technologies.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    TikTok Bill to Be Bundled With Aid to Ukraine and Israel, House Speaker Indicates

    A new measure attempts to force the Senate’s hand on passing legislation to ban TikTok or mandate the app’s sale.The House on Wednesday made another push to force through legislation that would require the sale of TikTok by its Chinese owner or ban the app in the United States, accelerating an effort to disrupt the popular social media app.Speaker Mike Johnson has indicated that he intends to package the measure, a modified version of a stand-alone bill that the House passed last month, with foreign aid for Ukraine, Israel and Taiwan.While the new legislation would still require TikTok’s parent company, ByteDance, to sell the app to owners that resolved national security concerns, it includes an option to extend the deadline for a sale to nine months from the original six months, according to text of the legislation released by House leadership. The president could extend the deadline by another 90 days if progress toward a sale was being made.House lawmakers are expected to vote Saturday on a package of legislation that includes the TikTok ban and other bills popular with Republicans, a maneuver intended to induce lawmakers to vote for the foreign aid. If the package passes, the measures will be sent as a single bill to the Senate, which could vote soon after. President Biden has said he’ll sign TikTok legislation into law if it reaches his desk.The move “to package TikTok is definitely unusual, but it could succeed,” said Paul Gallant, a policy analyst for the financial services firm TD Cowen. He added that “it’s a bit of brinkmanship” to try to force an up-or-down vote without further negotiation with the Senate.The new effort is the most aggressive yet by legislators to wrest TikTok from its Chinese ownership over national security concerns. They cite the potential for Beijing to demand that TikTok turn over U.S. users’ data or to use the app for propaganda. The earlier House bill faced skepticism in the Senate over concerns that it would not hold up to a legal challenge.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Beeper Messaging App Is Acquired as a Bet on a Regulatory Shift

    Automattic, the company behind WordPress.com, bought Beeper in an effort to build a system that works across Android and Apple devices.Beeper, the app that brought iPhone messaging features to Android smartphones, has been acquired by Automattic, the company behind WordPress.com, to support the development of a single service for sending and receiving chats from WhatsApp, Signal, LinkedIn and others.The deal, which is valued at about $125 million, was announced on Tuesday. It comes as regulators in Europe and the United States pressure the biggest tech companies to open their messaging services to third parties. Regulators believe doing so will make it easier for people to communicate with friends and family and to switch messaging providers.Automattic is betting that the changing regulatory environment will make people more interested in finding a unified messaging system like Beeper, said Toni Schneider, Automattic’s interim chief executive.Beeper is Automattic’s second messaging service acquisition. Last year, it bought Texts, an iPhone app that brings together messages from Instagram, iMessage and others. Mr. Schneider said Beeper and Texts employees would combine their systems into a single app that worked on iPhones and Android smartphones as well as computers.“Everyone has this problem where they say, ‘I know I had this conversation with this person, but I can’t remember where,’” Mr. Schneider said. “We think we can innovate a lot in this space.”Eric Migicovsky, who co-founded Beeper in 2020, said Beeper and Texts would deliver their combined service this year. The teams that built those companies will meet in two weeks in Portugal to begin that process.“The real thing we have been competing against was apathy about new experiences in chat,” Mr. Migicovsky said.Last year, Beeper released an app that offered Android phone users the ability to send encrypted messages and high-resolution videos to iPhones. The app added more than 100,000 users in three days before Apple blocked it by changing its iMessage system.Though a Justice Department lawsuit accusing Apple of maintaining an iPhone monopoly did not refer specifically to Beeper, the problems highlighted by Beeper’s conflict with Apple were mentioned in the complaint, which was filed in March. The department faulted Apple for making “iPhone users less secure than they would otherwise be” by “rejecting solutions” for smartphone messaging like those provided by Beeper.Beeper will soon be open to anyone who wants to download it after a testing period that limited the app to about 100,000 users, Mr. Migicovsky said. The company had 466,000 people on a waiting list. About 60 percent of its users are on Android smartphones.Automattic was an early investor in Beeper, which had raised $16 million from investors that included Y Combinator and Initialized Capital, Mr. Migicovsky said. Last week, Beeper’s 27 employees officially began work at their new company. More

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    Deal Talks Between Paramount and Skydance Heat Up

    David Ellison, the founder of the Skydance media company, met with Paramount’s board of directors late last month to discuss the deal.Shari Redstone is getting one step closer to selling her media empire.Paramount, home to one of Hollywood’s most storied movie studios as well as CBS and cable networks like Nickelodeon, has been discussing entering into exclusive talks with the media company Skydance for a potential deal, according to four people with knowledge of the discussions. Moving to exclusive talks would be a significant step forward in a process that has been shrouded in uncertainty for months.Whether the two sides will agree to exclusivity remains to be seen, especially with other investors still pursuing Paramount. Apollo Global Management, an investment firm with more than $500 billion under management, has submitted an $11 billion offer to acquire the Paramount movie studio. Paramount’s board of directors, though, is seeking a deal for the entire company — including its cable channels and CBS — rather than pieces.Apollo continues to evaluate what proposal might most appeal to the company’s board, two people familiar with the situation said. Byron Allen, whose Entertainment Studios owns the Weather Channel, has also expressed interest in acquiring Paramount.Ms. Redstone, the controlling shareholder of Paramount, began negotiating with Skydance to sell her stake in the company last year. She controls Paramount through National Amusements, a holding company that owns her voting stock in Paramount. Ms. Redstone has held off on a sale for years, betting that the company’s fortunes would improve as its flagship streaming service, Paramount+, gained momentum.The terms of the deal being discussed would involve Skydance’s buying National Amusements and merging with Paramount. That deal hinges on approval from Paramount’s board, which has for weeks been weighing its options with the help of advisers.Late last month, David Ellison, the tech scion who founded Skydance, met with Paramount’s board committee to discuss his vision for a deal, according to two of the people familiar with the talks. Founded in 2010, Skydance is best known for shepherding blockbusters for Paramount, including movies in the “Mission: Impossible” and “Top Gun” franchises.Representatives for Paramount and Skydance declined to comment, and the financial terms of the deal couldn’t be learned.Paramount’s stock has fallen 18 percent since the start of the year amid headwinds for the media industry. The company is trading at a steep discount to the combined value of Viacom and CBS, which merged to form Paramount in 2019. Paramount+ is still losing money, but its losses have slowed and it continues to add subscribers.The ratings agency S&P Global downgraded Paramount’s debt to junk last week, citing “accelerating declines” in its traditional television business and continued uncertainty in its push toward streaming. Some analysts said that ratings action might make Paramount easier to acquire, since it could circumnavigate a provision that would require a buyer to immediately pay the company’s debt. More

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    Big Republican Donor Jeff Yass Owned Shares in Trump Media Merger Partner

    The billionaire Wall Street financier is also a major investor in ByteDance, the Chinese parent company of TikTok, which faces a possible ban in the United States.Jeff Yass, the billionaire Wall Street financier and Republican megadonor who is a major investor in the parent company of TikTok, was also the biggest institutional shareholder of the shell company that recently merged with former President Donald J. Trump’s social media company.A December regulatory filing showed that Mr. Yass’s trading firm, Susquehanna International Group, owned about 2 percent of Digital World Acquisition Corp., which merged with Trump Media & Technology Group on Friday. That stake, of about 605,000 shares, was worth about $22 million based on Digital World’s last closing share price.It’s unclear if Susquehanna still owns those shares, because big investors disclose their holdings to regulators only periodically. But if it did retain its stake, Mr. Yass’s firm would become one of Trump Media’s larger institutional shareholders when it begins trading this week following the merger. Shares of Digital World have surged about 140 percent this year as the merger with the parent company of Truth Social, Mr. Trump’s social media platform, drew closer and Mr. Trump became the presumptive Republican nominee for president.“Susquehanna is a market maker and has zero economic interest in Trump Media,” said the company in a statement. “The firm’s long position is offset by short positions of the same size.”Regulatory filings show the firm used offsetting securities to try to minimize its gains or losses in the stock.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Americans Invested Billions in Chinese Companies. Now Their Money Is Stuck.

    TikTok’s turn in geopolitical cross hairs highlights the narrowing paths to liquidity for investments in Chinese companies.When investors talk about “zombie” companies, they’re usually referring to distressed start-ups that are hobbling along, unable to grow and unlikely to ever return the money they’ve raised.But as deal makers feverishly debated efforts this week by lawmakers to force TikTok’s Chinese parent company, ByteDance, to sell the app, they talked about a new version: China zombies.China zombies may have booming businesses, but they’re unlikely to provide investors with any immediate return because they’re stuck in geopolitical cross hairs.It’s not just the investors in ByteDance who, after handing it more than $8 billion, are stuck. What looked like a mammoth growth opportunity just a few years ago — inspiring investors to pour money into companies like Ant Financial, PingPong and Geekplus — has turned hostile.“There’s more out there like ByteDance,” Evan Chuck, a partner at the advisory firm Crowell, said of companies with investors who may find themselves in this position. “It’s only really heating up further.”Selling is increasingly a long shot. Take TikTok. Even if ByteDance puts the app up for sale, the Chinese government is unlikely to allow the company’s most valuable asset, its recommendation algorithm, to be included. The country introduced new export control rules for technologies like that algorithm in 2020, just as TikTok was nearing a deal with U.S. buyers (which eventually fell apart).We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More