The Executive Order: TikTok and WeChat

There is an order that was signed this week, and the order is the ban: the two executive orders that President Trump signed on August 6, 2020, the transactions with TikTok and WeChat that are prohibited after 45 days, the ByteDance and the Tencent that are the targets, the sales that must happen or the apps that must end. The orders came on the same day: the TikTok order that is about the national security, the WeChat order that is about the same, the two apps that are caught in the same storm, the companies that threatened to sue, the Microsoft talks that continue. The executive order is the August 2020 story, and the story is the lesson: the deadlines that are signed, and the deals that are forced.

The order is the subject of this article: what it says, what it means, and how the 45 days will shape the biggest forced sale in the industry.

1. The Order

The order is the event, and the event is the signing: the executive orders of August 6, 2020, the two documents that the president signed, the TikTok that is named and the WeChat that is named, the transactions that are banned after the 45 days, the companies that must divest or disappear. The order is the wording: the national emergency that is declared, the data that is the stated concern, the foreign adversary that is cited, the commerce that is restricted, the exceptions that will be defined by the Commerce Department. The order is the power: the president who acts alone, the companies that are given the choice, the clock that starts on the day of the signature.

The order is also the escalation: the threats that were made on July 31, the orders that followed on August 6, the week that moved from the words to the action, the pressure that is now formal, the uncertainty that is now scheduled. The order is the August 2020 lesson: the government that moves quickly, the platforms that must respond, the deadlines that are real. The order that was signed was the hammer, and the hammer was the law.

2. The Two Apps

The apps are the targets, and the targets are the giants: TikTok with its hundred million American users, its two billion downloads, its short videos, its algorithm, its parent ByteDance. WeChat with its billion users around the world, its messaging that is the life of the Chinese diaspora, its payments that are the rails, its parent Tencent, the company that also owns the games and the music and the stakes across the industry. The apps are the difference: the consumer entertainment that is TikTok, the essential utility that is WeChat, the two that are banned in the same breath.

The apps are also the contrast: the TikTok that can be sold, the WeChat that cannot easily be, the business that is the United States for the one, the business that is the world for the other, the stakes that are different and the orders that are the same. The apps are the August 2020 lesson: the platforms that are Chinese-owned, the uses that are American, the value that is trapped between. The apps that were named were the targets, and the targets were the test.

3. The Companies

The companies are the parents, and the parents are the powers: ByteDance that is valued above the hundred billion dollars, the most valuable startup in the world, the founder Zhang Yiming, the algorithm that is the crown, the TikTok that is the global win. Tencent that is one of the largest companies in Asia, the market value in the hundreds of billions, the founder Pony Ma, the WeChat that is the super app, the empire that spans the games and the investments. The companies are the scale: the two that are too big to ignore, the two that are now named in the orders, the two that must answer to Washington.

The companies are also the choices: the ByteDance that can sell the TikTok business, the Tencent that has no obvious sale, the negotiations that are possible for the one, the litigation that is likely for the other, the strategies that diverge. The companies are the August 2020 lesson: the size that does not protect, the success that attracts the state, the options that are few. The companies that were ordered were the subjects, and the subjects were the players.

4. The Negotiation

The negotiation is the parallel, and the parallel is the Microsoft: the talks that continue through the order, the United States operations that would be bought, the app that would be American-owned, the structure that is being designed, the deadline that now has a date. The negotiation is the shape: the users and the data and the engineers that would transfer, the algorithm that is the question, the license that would be granted, the government that would approve, the deal that would satisfy the order. The negotiation is the race: the 45 days that are running, the terms that must be set, the price that must be agreed, the review that must follow.

The negotiation is also the pressure: the order that strengthens the buyer, the seller that must accept, the price that is set by the deadline, the alternatives that are worse, the leverage that has moved. The negotiation is the August 2020 lesson: the government that sets the table, the companies that must deal, the clock that is the strongest negotiator. The negotiation that ran through the order was the solution, and the solution was the sale.

5. The Numbers

The numbers are the value, and the value is the estimate: the TikTok operations in the United States that are worth between 20 billion and 50 billion dollars, the users that number the hundred million, the revenue that is still small, the growth that is the bet, the price that the buyers will argue. The numbers are the scale: the WeChat business that is harder to count, the Tencent that is worth the hundreds of billions, the stakes that are global, the impact that is broader, the orders that touch the whole. The numbers are the stakes: the largest forced sale in the technology industry, the billions that will move, the fees that the bankers will earn.

The numbers are also the uncertainty: the valuations that are disputed, the revenue that is young, the buyers that will lowball, the sellers that will resist, the final price that no one knows. The numbers are the August 2020 lesson: the value that is set by the politics, the price that is set by the deadline, the estimates that are the guesses. The numbers that were quoted were the stakes, and the stakes were the game.

6. The Reviews

The reviews are the process, and the process is the committee: the CFIUS that examined the Musical.ly acquisition, the concerns that were raised about the data, the mitigation that was promised and not delivered, the review that led to the order, the years of the scrutiny that preceded the week. The reviews are the pattern: the foreign ownership that is examined, the data that is the concern, the national security that is the lens, the transactions that are undone, the rules that are tightening. The reviews are the machinery: the agencies that are involved, the intelligence that is consulted, the recommendations that are made, the president who decides.

The reviews are also the precedent: the deals that were blocked before, the companies that were forced to change, the committees that grew stronger, the scrutiny that is now routine, the message that is sent to every foreign owner. The reviews are the August 2020 lesson: the process that precedes the order, the risk that is assessed in secret, the outcome that can arrive without warning. The reviews that built the case were the foundation, and the foundation was the order.

7. The Response

The response is the pushback, and the pushback is the threat: the companies that said they would sue, the lawyers who were hired, the constitutional arguments that were prepared, the due process that was claimed, the challenge that is coming. The response is the uncertainty: the courts that may pause the order, the definitions that are missing, the Commerce Department that must write the rules, the months that the litigation will take, the deals that proceed in the shadow. The response is the noise: the lobbyists who are hired, the statements that are issued, the customers who are confused, the users who worry, the markets that watch.

The response is also the reality: the lawsuits that rarely stop the pressure, the orders that are signed and defended, the companies that negotiate while they litigate, the sales that happen under the threat, the legal fight that is the leverage. The response is the August 2020 lesson: the pushback that is expected, the litigation that is the tool, the outcome that is still the deal. The response that was threatened was the counter, and the counter was the pressure.

8. The Lesson

The lesson is the whiplash, and the whiplash is the speed: the threats that became the orders in a week, the deals that must close in the 45 days, the companies that must react to the politics, the regulation that moves faster than the business. The lesson is the August 2020 meaning: the national security that overrides the commerce, the data that is the sovereign concern, the platforms that are the instruments, the owners that are the risk. The lesson is the practice: the deadlines that are the dealmakers, the negotiations that are always live, the governments that are always watching, the structures that must be prepared.

The lesson is also the perspective: the two orders that were signed on the same day, the two companies that must answer, the industry that watches and learns, the foreign owners who will now think twice, the deals that will be shaped by the fear. The executive order is the August 2020 story, and the story is the lesson: the signature that started the clock, the 45 days that are running, the sale that is being forced, the change that is coming to the platforms. The order is the deadline, and the deadline is the new rule.

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