Tag Archives: Bid

Last Minute Purchase Bid at the TikTok Ban Deadline

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The future of Tiktok in the United States is once again on the line. Following years of debates over whether to ban domestic apps, the deadline for the company to sell or transfer assets to non-Chinese owners is approaching on April 5th. Donald Trump has stated that his administration is nearing a deal with the app.

A few potential buyers have expressed interest in acquiring the immensely popular social media app. Reports have surfaced suggesting various deals, such as investments from Trump-friendly venture capital firm Andreessen Horowitz and bids from Amazon. In January, the president signed an executive order extending the ban or sale deadline to April. Despite his recent remarks expressing his desire to see Tiktok continue operating, the future for Tiktok and its 170 million US users remains uncertain.

In light of imposing sweeping tariffs on numerous countries, including China, Trump hinted during an Air Force event that trade penalties could be eased if the Chinese company owning Tiktok agrees to the sale.

Bytedance has stated that they have no intentions of selling the app, with court filings deeming the sale “simply impossible.” Bytedance and Tiktok have not responded to requests for comments.

The notion of banning Tiktok was first raised by Trump in 2020, citing national security risks posed by Chinese-owned apps. The issue garnered bipartisan support, leading to Congress overwhelmingly voting to ban the app last year. In January, the US Supreme Court sided with Congress, upholding federal law calling for the sale or ban of Tiktok. The original deadline was set for January 19th.

On the eve of the deadline, Tiktok ceased operations with a message stating, “I’m sorry, but Tiktok is currently unavailable.” Apple and Google also removed the app from their stores to comply with federal law. The social media company expressed gratitude that President Trump was willing to work towards a solution to bring Tiktok back online.

On his first day in office, Trump extended the deadline for the ban or divestment of Tiktok to the 75th. The looming deadline is now fast approaching.

Initially proposing a ban on Tiktok, Trump later joined the app and amassed millions of followers while campaigning for the presidency. He previously vowed to support Tiktok’s presence in the US and has endeavored to fulfill that promise.

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Recent reports from CBS suggest that Trump is considering final proposals for Tiktok, including bids from various investors in private equity, venture capital, and the high-tech industry. Investors like Blackstone and Oracle are among those interested in acquiring Tiktok. Oracle, co-founded by Trump’s ally Larry Ellison, has been eyeing Tiktok’s profitable stake for years.

Analysts believe that it is highly unlikely for Tiktok to face another ban. Speculations point towards a potential sale or another form of expansion. The key question revolves around whether the algorithm will be included in the sale, as Tiktok without its algorithm would significantly impact its power and appeal.

Source: www.theguardian.com

OpenAI rejects $97.4 billion bid from Musk, asserts company is not for sale

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The recent opening rejected a $97.4 billion bid by a consortium led by billionaire Elon Musk for ChatGpt makers, stating that the startup is not up for sale.

This unsolicited offer is Musk’s latest attempt to thwart a startup co-founded with CEO Sam Altman.

“Openai is not for sale. The board unanimously turned down this latest attempt to disrupt Musk’s competition. Openai emphasized that their mission is to ensure that AGI benefits humanity and mentioned the possibility of a reorganization as a nonprofit organization.”

Altman confirmed in an interview with Axios that Openai is not for sale, and he responded to Musk’s offer with a simple “no thanks,” prompting Musk to call him a “swindler.”

A consortium, including Musk-led AI startup Xai, stated that they would withdraw their bid for Openai’s nonprofit status if plans to become a for-profit organization were removed, as per a court application filed on Wednesday.

Two days ago, the consortium introduced new terms in the proposal through a court filing. The filing exposed that the client’s “published ‘bids’ were not actual bids at all.” The Openai board communicated their position to Musk’s lawyer on Friday.

Other investors in the consortium include Valor Equity Partners, Baron Capital, and Hollywood Power Broker Ari Emanuel.

Altman and Musk have been in conflict for several years.

After Musk’s departure in 2019, Openai established a for-profit division that attracted significant fundraising, leading Musk to claim that the startup was deviating from its original mission and focusing more on profits than public good.

Musk filed a lawsuit against Altman, Openai, and their major supporter Microsoft in August last year on grounds of breach of contract.

In November, Musk requested a preliminary injunction from a US district judge to prevent the transition to a for-profit structure.

Source: www.theguardian.com

Elon Musk announces potential $97 billion bid on OpenAI if it remains a nonprofit.

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Elon Musk has stated that he will retract a $97 billion offer to purchase the nonprofit organization behind Openai if the makers of ChatGpt agree to abandon plans to convert them into for-profit entities.

“If the board of Openai, Inc is willing to uphold its charitable mission and ensure that any “sales” are conducted without conversions, Musk will withdraw his bid,” he stated on Wednesday. “If not, the nonprofit must be compensated based on the amount paid by the prospective buyer for the assets.”

Earlier this week, Musk and a group of investors made their offer, adding a new twist to the ongoing controversy surrounding the artificial intelligence company he co-founded a decade ago.


Openai is currently operated by a nonprofit board dedicated to its original mission of developing AI “safer and more advanced than humans” for the public good. However, as the business grows, it has announced plans to change its corporate structure formally.

Musk, along with his AI startup Xai and a group of investment firms, seeks control over Openai by transforming the nonprofit into a for-profit subsidiary.

Openai CEO Sam Altman swiftly dismissed the unsolicited offers in a social media post, reiterating at AI’s Paris Summit that the company is not for sale. Openai’s board chairman, Bret Taylor, echoed these sentiments at the event on Wednesday.

Musk and Altman were instrumental in launching Openai in 2015, but had disagreements over leadership, leading to Musk stepping down from the board in 2018 only to rejoin in 2024.

During a video call at the World Government Summit in Dubai, Musk criticized Altman once again, comparing Openai to turning the Amazon rainforest into a timber company. Altman countered that Musk’s legal challenges were influenced by his competing startups.

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Musk is currently seeking a California federal judge’s intervention to prevent Openai’s commercial conversions, alleging breach of contract and antitrust violations. While the judge has shown doubt about some of Musk’s arguments, no ruling has been issued yet.

Source: www.theguardian.com

Elon Musk to lead group in unexpected $100 billion bid for OpenAI

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Elon Musk stirred up a dispute between Openai and its CEO Sam Altman on Monday. The billionaire heads a group of investors that revealed they had put forth a $97.4 billion bid for “all assets” of the artificial intelligence company to Openai’s board of directors.

The startup behind ChatGpt is in the process of transitioning from its original non-commercial status. Openai also operates a for-profit subsidiary, and Musk’s unsolicited offer could complicate the company’s plans. Wall Street Journal first reported the proposed bid.

“If Sam Altman and the current Openai, Inc. board of directors are intending to fully focus on profit, it is crucial that the charity is adequately compensated for what its leadership is taking away from it. It’s about time,” stated Mark Toberov, a lawyer representing investors.

Altman quickly responded to Musk shortly after the news broke, stating, “Thank you, but I’ll buy Twitter for $9.74 billion if necessary.” Musk acquired Twitter for $44 billion in 2022 and rebranded it. Musk’s reply to the post was “Swindler.”

Musk co-founded Openai but left the company in 2019 to start his own AI company called Xai. There have been ongoing disagreements between him and Altman over the company’s direction. He sued Openai over its restructuring plan, dropped the lawsuit, and then reignited the conflict.

The bid is backed by Xai and several investment firms, including those managed by Joe Lonsdale, who co-founded Stealth Government contractor Palantir. Ari Emanuel, CEO of entertainment company Endeavor, also joined the group through his investment fund.

“At X.ai, we adhere to the values that Openai has committed to uphold. Grok has fostered open source. We respect the rights of content creators,” Musk stated. “It’s time for Openai to return to its roots of open-source, safety-focused power. We will ensure that happens.”

Toberoff informed the Wall Street Journal that Musk’s consortium of investors is prepared to match or exceed the value of any other potential bids.

Openai argues that the restructuring is crucial for the company’s sustainability and access to capital. They claim that sticking with the non-profit structure alone will not keep up with the highly competitive world of AI innovation. Openai anticipates the restructuring to be completed by 2026.

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Musk is a close associate of Donald Trump, whereas Altman met with the president and attended the inauguration. Trump has identified Openai as part of a group of AI companies collaborating on a $500 million deal named Stargate to invest in cutting-edge technology. Musk’s Xai is not included in this agreement.

Source: www.theguardian.com

TikTok’s Final Bid to Overcome Anti-Sale Laws: Supreme Court Appeal | TikTok

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TikTok made a last-ditch effort to continue operating in the U.S. on Monday, as it passed a temporary law requiring its China-based parent company ByteDance to sell the popular app by January 19. The U.S. Supreme Court was asked to intervene and prevent a ban from taking effect.

Both TikTok and ByteDance have filed emergency requests with a judge to block the impending ban on the social media app, which is used by approximately 170 million Americans. They are appealing a lower court ruling that upheld the law. Additionally, a group of U.S. users of the app filed a similar request on Monday.

The law, passed by Congress in April, was based on concerns raised by the Justice Department regarding TikTok’s Chinese ownership. The department alleges that as a Chinese company, TikTok could access and manipulate vast amounts of data on U.S. users, endangering national security. The ban is aimed at addressing these security threats.

TikTok and ByteDance argued in their Supreme Court filing that Americans should have the freedom to choose whether or not to use the app, without government interference. They criticized the law’s potential impact on freedom of speech and expressed concerns about the future implications if the law is upheld.

If TikTok is shut down even for a month, the companies estimate that they would lose a significant portion of their U.S. user base, affecting their ability to attract advertisers and content creators. The companies stress TikTok’s importance as a speech platform in the U.S. and argue that delaying enforcement of the ban would allow for further legal review.

Despite previous attempts to ban TikTok, President Donald Trump has signaled a shift in his stance and expressed interest in saving the app. He met with TikTok’s CEO and has indicated that his administration will evaluate the law’s legality. The companies emphasize the abrupt impact the ban would have, particularly on the eve of the presidential inauguration.

The companies urged the Supreme Court for a ruling that would allow them to manage the shutdown of TikTok in the U.S. if necessary, and to coordinate with service providers within a set deadline under the law. The escalating tensions between China and the U.S. add further complexity to the dispute.

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TikTok has vehemently denied any sharing of U.S. user data and accused U.S. lawmakers of creating unfounded concerns. The company emphasizes the importance of protecting free speech and the potential implications of restricting access to the platform.

In a statement following the lawsuit, TikTok’s spokesman Michael Hughes reiterated the need for the courts to closely scrutinize any restrictions on speech, particularly in cases involving foreign ownership. The ongoing legal battle underscores the complexities of balancing national security concerns with free speech rights.

Source: www.theguardian.com

Wizz, a cybersecurity company, turns down $23 billion acquisition bid from Alphabet Inc., Google’s parent company

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Cybersecurity company Wizz has turned down a $23bn (£18bn) takeover offer from Google’s parent Alphabet, making it the largest takeover bid ever for a tech company, and has opted for a stock market listing instead.

Alphabet had been in discussions with Wizz, a company established by graduates of Israel’s cyber-intelligence program, in an effort to catch up with competitors Microsoft and Amazon in the competitive cloud-services market.

Wiz provides a service that scans data on cloud storage platforms like Amazon Web Services and Microsoft Azure for potential security threats.

The New York-based startup, which is financially backed by investors such as Sequoia Capital and Thrive Capital, was last valued at $12 billion.

In an internal email to employees, the company expressed gratitude for the offer but decided to remain committed to its mission of building Wiz. CEO Assaf Rapaport outlined the company’s objectives of reaching $1 billion in annual recurring revenue and going public.

Despite the tempting offer, the company’s trust in its skilled team reaffirmed their decision. The positive response from the market further reinforced their aim to create a platform that is loved by both security and development teams.

As of Tuesday morning, neither Wizz nor Google have released an official statement regarding the end of the acquisition negotiations.

There are concerns that the deal may face regulatory challenges as authorities seek to tighten their control over acquisitions involving major tech companies.

Last month, the US Department of Justice and the Federal Trade Commission agreed to investigate leading players in the AI market, including Microsoft, OpenAI, and Nvidia.

Established in 2020, Wizz was valued at $12 billion in a funding round in May, attracting investments from Andreessen Horowitz, Lightspeed Venture Partners, and Thrive.

Wiz claims to have 40% of the Fortune 100 as clients and boasts an annual recurring revenue of $350 million.

Source: www.theguardian.com