Tipping the Waiter at the TikTok Table; Howard Schultz: This is a five-star emergency
Up on today's podcast tech and the platform that's finally got adults talking tick tock tech stocks have been on a tear salesforce Microsoft and facebook all hit record highs this week. But leading the charge apple last Friday I will lead over ten percent in one day yesterday the stock closed at an all time high and now apple is just a few percentage points away from hitting a two trillion dollars market cap the golden number to get it there four, hundred, sixty, seven dollars and seventy seven cents a share. And it looks like apple wine this milestone before it's order one stock split goes into effect at the end of this month. The other companies in the headlines? This Week tiktok beloved by teems commonly misunderstood adults, and now a chesapeake in international business and diplomacy. Here's injury Ross Mark and we've been talking TIKTOK and Microsoft and all of what's happening in Washington. Eunice Yoon reporting now that it's not just Microsoft but to other tech firms that are in talks with Tik Tok owner by dance over a possible sale in president trump said yesterday, he was ready to approve a purchase of the US operations tiktok. But then he said the only woman to do it if the government receives a lot of money in exchange listen to this. Microsoft or somebody else who was the Chinese? What what the price is the United States could should get a very large percentage of that price because we're making it possible without us you know I use the expression it's like the landlord and the tenant. And without the lease the tenant doesn't have the value what we're sort of in a certain way the lease we make it possible to have this great success, tick toxic tremendous success, but a big portion of its in this country. Sale? Yeah. Whatever the number is, would it would come from the civil on Wall Street banker problems. By the way they call that tipping the waiter, but I don't think we've ever tipped the government for transaction president trump said he told Microsoft's CEO that a very substantial portion of the price is going to have to come into the treasury of the United States because quote or making it possible for this deal to happen I was on the phone by the way with. The people involved in this transaction deal teams on all sides who heard that yesterday. Couldn't really even make. Heads or tails of what the president was saying how. Would you hey the government what would that look like could there be a formulation where ultimately you come to some kind of transactional agreement and then you announce that you're making some kind of infrastructure investment in the in the United States who you're going to create some kind of jobs I'm literally, this is the conversation that's happening inside the room among these companies. If we created some companies without yesterday we got to it. It's what did you say? I. Heard it reported yesterday when I first started reporter yesterday I thought he's just saying this stuff off the cuff he doesn't really mean it. Then I saw what he actually said I thought wow, he does mean it. I don't even know how you could possibly as somebody WHO's working on this deal come up with anything that makes any sense and Steve Ballmer Steve Balmer was with us yesterday and said as a shareholder as the top shareholder Microsoft he would love to see this deal get done at the right price. Gets an exciting proposition for Microsoft. obviously depends on the price. Price is important as well as whatever restrictions come from a government perspective but I think it's an exciting avenue for Microsoft to really increase its consumer base. I don't know how you figure out any sort of pricing right pricing when you have to then go in and add some significant number on top that you'd be paying to the US Treasury. Well, what are they? Going to happen is because this is a bit of evaluation game. And I hate to say, we're going to be using trump valuation but I think that what's going to happen is they're going to effectively. Create a higher valuation for the overall business. Then kind of create something where they can say we're giving you something and that bite dance is giving it. That's the other important part of the view at least from what I understand Turnley among these groups is that the money has to come out of China not out of a US company. So you're going to have to make it appear whatever that whatever it is that you're giving to appear that China's not getting part of that's because Peter Navarro and others don't frankly want US money. Ten twenty thirty billion forty billion dollars ending up in the hands of China for the. So there's so many sort of China. has already weighed in. On this today that China has weighed in on this today through some of the states that media where they are saying that you know the US is basically stealing us and trying to do take off with this that it's a rogue nation now at this point. So the idea that you are going to come up with something that satisfies the trump administration and at the same time satisfies the communist government in China Good luck with that I mean this is they're going to get caught in between the two the two with this because even though China may not. Necessarily, be looking for some of the same angles. It's not going to say, okay, it's okay for the US to come out looking like this and stealing our company and don't worry about it. CEO of Tiktok you know or bite dance don't worry about it. We'll live with that sort of a kind of a slap in the face. To all this stuff we're talking about it. Sorry Andrew it. It overshadows the the lead of the story right and that's that there are possibly other suitors for the US. Of tiktok, we we we talked yesterday Andrew about well, maybe media companies would be interested in this property. Now, you know the the wording here that that we use her that Eunice was reporting was other tech offense, which which makes it even more interesting and who these other tech companies. May Be an at. Are they based in the US or are they elsewhere? It would be very I. I would imagine it would be very hard for Google or Amazon or an apple etc to try to buy this company given the anti-trust pressures on them, I. Think my understanding was that the White House preferred that liked the Microsoft choice from a regulatory perspective. So it's all very interesting by the way the other piece of this is the part I. Really don't understand if you're apple today, you know we're talking about this two trillion dollars market cap that keeps going up and up and up. Given. Given. The China risks now now, maybe look they foxconn supplying hundreds of thousands of people if not more than are making these phone so maybe they can't just say to Tim. Cook. Good luck to you but I would think there would be risk if we do this to a Tiktok what kind of a backlash reciprocal. Backlash is China going to have for some US companies doing business there? That's the part I don't understand say knock built into any of the. It it's it's no different than the same conversations we were having during the depths of the trade war. Right? We had these same conversations. We push too hard if the tariffs are to punitive companies are companies like apple, the ones that are going to face the pushback or the retaliation in some way and I think it's fair to say that that that never really came back to these two tech companies I mean, she didn't say where those tech companies were based and and I wonder what the US would do that if if it was being pursued by a company, another technology company based in China but not based in the United States either how would Sylvia's see something like that and would they still threaten to turn off the the APP in the United States if it was not a US company?