FTC orders Illumina to divest Grail acquisition

Francis deSouza, Chief Executive Officer of Illumina Inc., during a panel session on day three of the World Economic Forum (WEF) in Davos, Switzerland on Thursday, January 19, 2023.

Stefan Wermuth | Bloomberg | Getty Images

The Federal Trade Commission ruled on Monday Enlightenment to divest its controversial acquisition of cancer test developer Grail, saying the deal would stifle competition and innovation.

The decision reverses an administrative judge’s September ruling that dismissed the FTC’s initial challenge to the $7.1 billion deal.

“The Commission determined that the acquisition would hamper innovation in the US market [multi-cancer early detection] testing while increasing prices and reducing the choice and quality of testing,” the FTC said in a press release.

Illumina said in a statement that it intends to appeal the FTC’s decision in federal court and seek an expedited decision. The DNA sequencing company noted that it believes it has a “strong case on appeal,” noting how it prevailed against the FTC last year.

Illumina shares fell more than 2% in afternoon trade on Monday.

Illumina said it expects a final decision on an appeal in late 2023 or early 2024. At that time, the company also awaits a decision on its appeal of a similar order by European Union regulators, Illumina added.

The EU’s executive body, the European Commission, blocked the acquisition of Illumina last year over similar concerns that it would hurt consumer choice and innovation. Illumina said last month it had challenged the European Commission, arguing that the agency had no jurisdiction to block the merger between the two US companies.

Said Illumina Monday that the success of those appointments “would maximize value for shareholders,” the company added.

“It enables Illumina to expand the availability, affordability and profitability of the breakthrough Galleri test in the $44 billion multi-cancer screening market,” said Illumina, noting a single-test Grail testing product screened for more than 50 types of cancer blood draw.

The test generated $55 million in revenue in 2022 and is expected to bring in up to $110 million this year, according to Illumina.

The FTC issued a statement accompanying its order Monday, highlighting that Illumina is the dominant manufacturer of next-generation genetic sequencing platforms. These products are a “critical component” of multi-cancer screening tests because they are used to analyze genetic material from blood samples taken for the tests, the commission noted.

Illumina is likely to remain the “only viable provider” of these platforms in the near term, which could hurt competition, the FTC said.

“The acquisition of GRAIL may provide Illumina with incentives to favor GRAIL over its competitors by providing GRAIL with preferential access or preferential terms for acquiring NGS inputs,” the FTC said. “Such preferences could distort competition in the research, development and commercialization of [multi-cancer early detection] Exams.”

Illumina “could make significantly more profit selling GRAIL tests than supporting competing test developers,” the commission added.

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The FTC also dismissed Illumina’s claims that the acquisition would “save lives” by accelerating the development, approval and adoption of Grail’s cancer tests. The Commission’s opinion says it believes that an increase in competition “would do more to save lives than allow a monopolist to integrate vertically and conquer the market”.

Illumina’s acquisition of Grail has sparked a backlash from another opponent, activist investor Carl Icahn, who owns a 1.4% stake in Illumina. His opposition to the deal stems from Illumina’s decision to complete it without antitrust approval. Icahn launched a proxy fight last month to seek seats on Illumina’s board and urge the company to back out of the deal.

Icahn did not immediately respond to a request for comment.

Disney CEO Iger slams DeSantis over Florida retaliation

Bob Iger called Florida Gov. Ron DeSantis actions Monday The Walt Disney Co. Retaliation, “Anti-Business” and “Anti-Florida”.

The feud between DeSantis and the company escalated early Monday when the governor asked the state’s inspector general to determine whether the House of Mouse’s clever move to retain control of the outer borders of Orange and Osceola counties is legal — and whether any of the company’s executives were involved in the scheme.

During the company’s annual shareholder meeting on Monday, Disney CEO Iger addressed investor inquiries about the ongoing dispute between the company and Florida lawmakers. He pointed out that Disney has more than 75,000 employees in the state and has created thousands of indirect jobs, brings about 50 million visitors to Florida each year, and is the state’s largest taxpayer

“A year ago, the company commented on pending legislation in Florida,” Iger said, apparently referring to what critics called the “Don’t Say Gay” law. “And while the company may not have handled the position it took very well, just like individuals, a company has a right to free speech.”

Bob Iger, CEO, Disney, during a CNBC interview, February 9, 2023.

Randy Shropshire | CNBC

He added: “The governor was very angry with the position Disney has taken and it appears he has decided to retaliate against us, including naming a new board to oversee the property and business. Indeed, to try to punish a company for exercising a constitutional right. And that seems really wrong to me.”

Disney's power play: DeSantis board of directors ousted until 2053

Iger said Disney plans to spend more than $17 billion investing in Walt Disney World over the next decade, which would create about 13,000 jobs at the company and generate even more taxes for Florida.

“Our point on this is that any action that supports this effort simply to retaliate for a position the company has taken sounds not only anti-business but also anti-Florida,” he said. “And I’ll just leave it at that.”

Last week, the newly appointed DeSantis board of directors for the Reedy Creek district, now called the Central Florida Tourism Oversight District, revealed that the former Disney-allied board signed a long-term agreement that drastically reduces the control that can be exercised over the company restricts and its district.

Florida Gov. Ron DeSantis speaks during The Florida Blueprint event on Long Island, New York, U.S. April 1, 2023. Ron DeSantis commented on the grand jury indictment of Donald J. Trump, 45th President of the United States, in Manhattan , New York.

Kyle Mazza | Anadolu Agency | Getty Images

The agreement was signed on Feb. 8, a day before the House of Florida voted to put DeSantis in charge. DeSantis replaced all Disney-allied board members with five Republicans on February 27. Only then was Disney’s new binding agreement discovered.

The agreement contains a clause that dates back to 1692 in Britain. The “Declaration is intended to remain in force until 21 years after the death of the last surviving descendant of King Charles III, King of England, who is alive at the time of this Declaration,” the document said.

The governor’s letter called the board’s agreement an attempt “to usurp the authority of the CFTOD board” and “overturn recently passed legislation, undermine Florida’s legislative process and defy the will of Florida residents.”

He said there were also “legal weaknesses” with the agreement, including inadequate notification, improper delegation of authority and ethical violations.

However, Disney has said all of the board’s maneuvers were perfectly legal — the agreement was discussed and approved in open, respected public forums in accordance with Florida’s Sunshine Act.

Developments in the conflict between DeSantis and Disney mark just the latest step in one of several partisan struggles waged by the Republican governor.

DeSantis is widely believed to be laying the groundwork for launching a presidential campaign in 2024. That move is expected to come not long after the current Florida legislature ends in early May. Polls show DeSantis is the most competitive of the potential opponents for former President Donald Trump in a GOP primary.

Florida’s governor took aim at Disney after the company publicly challenged Florida’s HB 1557 law earlier last year. HB 1557, dubbed the “Don’t Say Gay” law by critics, restricts teaching in early childhood education about sexual orientation or gender identity.

Republican Rep. Randy Fine told CNBC’s Squawk Box last April that the Reedy Creek dissolution bill was not retaliatory, but then said, “When Disney entered the hornet’s nest, we looked at specific counties.”

Until recently, there hasn’t been much public discussion about the dissolution of Disney’s 55-year special borough, leading DeSantis critics to question the timing and speed with which the governor had cracked down on the company.

The fight between DeSantis and Disney shows no signs of slowing down. During a book tour in Georgia last week, DeSantis told attendees, “You haven’t seen anything.”

Kelly Clarkson Lastly Reveals Why She Missed Cher’s In-Individual Interview

Kelly Clarkson still kicks herself for missing a moment like this.

The Kelly Clarkson Show host booked the interview of a lifetime when she got to sit down with the only one Cher for a December 2022 episode of her talk show. But while the “Believe” singer was in the studio in person to chat, Kelly was at home and had to video conference in. And now she’s finally revealing why.

“It was the saddest thing ever,” the American Idol alum exclusively revealed Adrienne Bailon Houghton one! News’ April 3 Kelly Clarkson Takeover Special. “I found out I have COVID and I was fine at first. I thought, ‘Wait, what? It came back positive?’ And the first thing that struck me was that I couldn’t interview her because I was so excited.”

While Kelly admitted she was “so depressed” that she had to quarantine, Cher couldn’t have been a greater pro on the situation.

Walmart introduces new search for web site and app

Walmart redesigned its website and app to encourage shoppers to browse and buy more.

Walmart

WalmartThe digital shop has a new look.

Starting this week, all customers browsing the company’s website and app will see larger and glossier photos, videos, and social media-inspired content that Walmart hopes will lead to more purchases.

Tom Ward, Walmart’s chief e-commerce officer, said the goal is to make online shopping easier and more engaging.

“When you walk into a store, you are inspired and excited by what you see,” he said. “And so we thought, ‘How do you drive that same inspiration and excitement into our closest store — our app?'”

The major retailer’s online makeover comes as consumers grow hesitant to buy any goods like clothing and consumer electronics while paying higher prices for essentials like groceries and housing. Sales of discretionary general merchandise in the U.S. are down 4% year over year in dollars and 5% in units since February, according to Circana, the merged market research firm formerly known as The NPD Group and IRI.

Walmart felt it too. In recent quarters, sales have increasingly come from groceries rather than general merchandise. Walmart’s CFO John David Rainey told CNBC in February that consumers’ more price-conscious mentality had an impact on the company’s prospects for this year.

Walmart expects weaker sales in the coming months. It expects Walmart US same-store sales to rise between 2% and 2.5% excluding fuel in the coming fiscal year. The company expects adjusted earnings per share for the fiscal year to be between $5.90 and $6.05, excluding fuel.

That would mark a decline from last fiscal year, when same-store sales for Walmart US rose 6.6% and adjusted earnings per share were $6.29, excluding fuel.

Ward acknowledged that “there’s a lot of conversation going on right now about wants and needs.” He said Walmart not only wants to offer low prices, but also to grab customers’ attention by bringing them fresh, trendy, and seasonal items like spring dresses, patio furniture, and Easter basket toys.

He said the new look of the site and app could also boost sales from third-party retailers that have joined or may join Walmart’s marketplace. In addition to selling its own wares, Walmart has the playbook of riffelt Amazon B. by using a third-party marketplace to expand its range of items online and making money by selling fulfillment services.

E-commerce has become a more important part of Walmart’s business, especially after a push sparked by the Covid pandemic. Online sales accounted for about $53.4 billion — or nearly 13% — of Walmart US’s total net sales for its fiscal year that ended in late January, according to the company. That’s a jump of $15.7 billion, or about 5% of all Walmart US net sales in 2019.

Online sales for Walmart US grew 17% year over year for the holiday quarter and 12% year over year for the full fiscal year.

The retailer is expected to present its latest guidance and strategy at an investor day in Tampa, Fla. this week.

Illumina Urges Shareholders to Reject Carl Icahn’s Board Nominees

Rafael Henrique | Light Rocket | Getty Images

Enlightenment on Thursday urged shareholders to reject Carl Icahn’s three board nominees at this year’s annual meeting because they would “endanger” the progress of the biotech’s core business.

“Carl Icahn’s participation in Illumina puts the company’s long-term success at risk, and its nominee directors do not bring relevant skills to the board,” San Diego-based Illumina said in a preliminary proxy statement filing.

The DNA sequencing company asked shareholders to discard any proxy cards sent by the activist investor or its affiliates. Illumina also urged shareholders to vote for the proposed board of directors and noted that final proxy statement material will be mailed soon.

The company has not announced the date of its annual stockholders meeting at which Icahn intends to nominate its candidates for election.

Illumina said it will provide more information about “the strength of our board and management team, our strategy for creating shareholder value — with innovation at its core — and the potential for Mr. Icahn’s associated nominees to damage that strategy.”

Illumina’s comments are the latest step in a looming proxy fight with Icahn, which owns a 1.4% stake in the company. Icahn is seeking board seats and is urging Illumina to reverse its $7.1 billion acquisition of cancer test developer Grail, which he previously described as “a new low in corporate governance.”

Icahn said in a statement to CNBC, “I would find it funny if it weren’t so reprehensible that ILMN’s stock price has fallen 63% because CEO Francis deSouza made such an absurd and questionable purchase.”

“And what’s really funny is the idea that it’s hard to find good CEOs in this space,” he added. “I reckon it would be hard to find someone who could lose $50 billion in shareholder value in a matter of months but still get 87% more for a grand total of $26.8 million in 2022.”

DeSouza joined Illumina as CEO in 2016. Icahn was referring to its total compensation, which nearly doubled despite a dramatic decline in Illumina’s market value over the past year. The company’s market cap has shrunk to around $35 billion from about $75 billion in August 2021, the month it struck the Grail deal.

Icahn said Wednesday that Illumina should bring back its former CEO, Jay Flatley, to “correct the situation immediately.”

Carl Icahn speaks at Delivering Alpha in New York on September 13, 2016.

David A Grogan | CNBC

On Thursday, Illumina said Icahn had previously said more positive things about deSouza. The company said Icahn “supported” deSouza’s actions as CEO during a meeting earlier this month, but noted that he will not publicly repeat those comments.

Illumina emphasized that Icahn was not a long-term shareholder and had not looked into the company before requesting representation on the board. The company noted that it acted “swiftly and deliberately” to meet with Icahn, interview its nominees in good faith and explore possible alternatives to a proxy fight.

But Icahn is “unwilling to compromise” and insisted the board add its three nominees without input from shareholders, Illumina said. The company also claimed that Icahn said he wanted his nominees on the board because they were not independent and he could control them directly.

“My guys report to me,” Icahn said of his nominees, according to Illumina.

The company said Icahn’s decisions had no relevant healthcare or genomics expertise on paper. After interviewing the nominees, Illumina concluded that they also lacked any “original perspective or detail” about how they would like to see the company differently.

“Each candidate instead recited the same poorly researched and unworkable ideas regarding GRAIL,” Illumina said.

The company added, “It has become abundantly clear that neither Mr. Icahn nor his three associate nominees – Jesse Lynn, Andrew Teno or Vincent Intrieri – understand the Illumina or GRAIL business and the regulatory processes involved.”

Intrieri, Founder and CEO of VDA Capital Management, was previously employed at Icahn. Lynn is general counsel of Icahn Enterprises and Teno is a portfolio manager at Icahn Capital LP, a firm where Icahn manages mutual funds.

Illumina said its board identified two independent candidates and offered Icahn to meet with them. But Icahn refused, saying he “wouldn’t even endorse Jesus Christ” as an independent candidate over his own candidates, Illumina said.

Illumina shares rose 1.5% on Thursday.

Jim Jordan shortly adjustments the topic when requested if he’ll subpoena Alvin Bragg

Rep. Jim Jordan quickly switched to conspiracy theories when asked if he would subpoena Alvin Bragg.

Video:

Jim Jordan quickly changes the subject when asked if he’ll subpoena Alvin Bragg: “Everything’s on the table, Maria … We think that’s, here’s maybe the most important thing we think it’s bigger than that.” it affects us all.” pic.twitter.com/79bnFwORBK

— Sarah Reese Jones (@PoliticusSarah) April 2, 2023

Jordan said on Fox’s Sunday Morning Futures when asked if he would subpoena Alvin Bragg:

Everything is on the table Maria, we’re going to speak to the other chairman and look at the answer, we just got his letter back, we’re checking, but we think this is, I think, maybe the most important thing we have think Bigger is about all of us. I don’t think it’s a coincidence that the same week we learn that the IRS knocked on Matt Taibbi’s door while he is testifying in Congress, the same week that we learn that a district attorney is moving to a left wing District Attorney Is Soros Back District Attorney will go after the former President of the United States.

I mean, that’s the scary thing, they paid a foreigner, think about it, they paid a foreigner to put together a fake dossier to spy on President Trump’s campaign. The FTC sends letters to Twitter asking which journalists you’re speaking to, and then of course, when Matt Taibbi’s testimony before the IRS knocks on his door, and now an indictment against a former president, the guy who happens to be in every single one poll, it’s about all of us, it’s about prosecuting anyone who opposes the agenda of the left, the agenda of the establishment, and that’s maybe the scariest thing of all.

Jordan tried to get Trump supporters to protest. Trump’s defense attorneys are still trying to make his supporters feel connected to the charges and how the charges put them at risk. Rep. Jordan even used the word scary.

Jim Jordan knows that Bragg is never required to testify before the House of Representatives, and there is nothing the House of Representatives can do to compel him to testify because House Republicans have no oversight authority over a local attorney general.

Jordan doesn’t want to talk about something that even he probably knows will never happen, so he launched a slew of conspiracy theories and tried to escalate fear because Trump supporters don’t challenge the myth of the former’s policies Presidents protest power is shattered.

Jason is the managing editor. He is also a White House press pool and congressional correspondent for PoliticusUSA. Jason has a bachelor’s degree in political science. His thesis focused on public policy with a specialization in social reform movements.

Awards and professional memberships

Member of the Society of Professional Journalists and the American Political Science Association

Carl Icahn slams Illumina CEO’s pay rise

Carl Icahn speaks at Delivering Alpha in New York on September 13, 2016.

David A Grogan | CNBC

Carl Icahn exploded Enlightenment for nearly doubling its CEO’s pay last year despite a dramatic decline in the biotech’s market value since inching a controversial deal.

“I would find it funny if it weren’t so reprehensible that ILMN’s stock price has fallen 63% because CEO Francis deSouza made such an absurd and questionable purchase,” Icahn said in a statement to CNBC.

“And what’s really funny is the idea that it’s hard to find good CEOs in this space,” the activist investor added. “I reckon it would be hard to find someone who could lose $50 billion in shareholder value in a matter of months but still get 87% more for a grand total of $26.8 million in 2022.”

Illumina did not immediately respond to a request for comment.

DeSouza stepped in as CEO in 2016 after nearly three years as president of the DNA sequencing company. He received nearly $26.8 million in total compensation last year, nearly double the $14.3 million he received in 2021, according to a preliminary proxy statement filed Thursday.

Part of deSouza’s pay increase is a $12.5 million special stock option grant, which Illumina described as a “meaningful incentive for retention in a highly competitive talent environment.”

DeSouza’s pay rise follows a bumpy 18 months for San Diego-based Illumina. The company’s market value has fallen to about $35 billion from about $75 billion in August 2021, the month it completed its acquisition of cancer test developer Grail.

Rafael Henrique | Light Rocket | Getty Images

The $7.1 billion Grail deal is at the center of a proxy fight between Icahn and Illumina, who have been trading jabs for nearly a month.

Icahn, who owns a 1.4% stake in Illumina, is seeking a seat on the company’s board. He’s also trying to pressure Illumina into reversing the Grail acquisition, which he has called “catastrophic” and “a new low in corporate governance.”

He has repeatedly criticized Illumina’s board and management team, saying earlier this week that the company should bring back former CEO Jay Flatley to “fix the situation.”

Illumina on Thursday urged shareholders to reject Icahn’s three nominees for its board of directors and went on to defend its management team’s decision to acquire Grail.

The company also claimed Icahn had more positive things to say about its current CEO before initiating the proxy fight.

Icahn told Illumina last month that he intends to make board nominations, although he thinks deSouza “did a good job” running the company, Illumina said.

The activist investor also said he “supported” deSouza’s actions as CEO during another meeting earlier this month, but noted that he would not publicly repeat those comments, according to Illumina.

Part of Icahn’s opposition to the Grail acquisition stems from Illumina’s decision to complete the transaction without antitrust approval. The company prevailed against opposition from the US Federal Trade Commission in September but is still fighting for approval from European regulators.

The EU’s executive body, the European Commission, blocked Illumina’s acquisition of Grail last year, fearing it would stifle innovation and hamper consumer choice. The commission also revealed details of a proposed order that would force Illumina to reverse the deal.

Illumina said earlier this month that Grail has “tremendous long-term value creation potential.”

Grail says it offers the only commercially available early detection test that can detect more than 50 types of cancer from a single blood draw. The test generated $55 million in revenue in 2022 and is expected to bring in up to $110 million this year, according to Illumina.

One of many Central Park 5 Responds to Trump Accusation: “Karma”

Yusef Salamone of the acquitted Central Park FiveHe kept it short and sweet when responding to the former president donald trump‘s indictment on Thursday, offering a poignant word on the situation.

“For those asking for my statement on the charges against Donald Trump – who has never apologized for calling for my execution – here it is: karma,” Salaam tweeted upon learning of Trump’s 34-count indictment.

Central Park Five: A brief overview of the case in which five innocent black men were wrongfully imprisoned

In 1989, Salaam was wrongly imprisoned along with four other black teenagers for the rape of a white woman in New York’s Central Park.

Salaam served nearly seven years in prison before he and the other four were exonerated in 2002.

However, Trump ran full-page newspaper ads urging politicians in New York to reintroduce the death penalty.

None of the five teenagers had been brought to justice at the time the defamatory allegations were made.

#PowerPost✊🏻✊🏼✊🏽✊🏾✊🏿™️

For those asking for my statement on the charges against Donald Trump — who never apologized for calling for my execution — here it is:

karma

— Joseph Abdussalaam (@dr_yusefsalaam) March 30

At the time, Trump had placed newspaper ads calling for the reinstatement of the death penalty in New York

Finally, while those close to the situation said Trump’s ads did not specifically call for the death penalty for the five black teenagers, they played an important role in obtaining a conviction against them.

When asked about apologizing to the boys in 2019, Trump claimed, “You have people on both sides. They have admitted their guilt.” HuffPost.

On Thursday, Salaam, who recently announced his candidacy for New York City Council, said Trump never “apologized for calling for my execution.”

RELATED: ‘Shocked’ Donald Trump speaks out after being charged with 34 counts in Stormy Daniels case

All five boys, Salaam, Korey Wise, Antron McCray, Raymond Santana and Kevin Richardson are now criminal justice activists.

They added that they were forced by the police to confess to the crime even though they did not commit it.

I was a young man when the Central Park 5 were convicted, not much older than the five young men wrongly convicted of the heinous assault on a jogger.

Trump ran a full-page ad in four newspapers declaring that these boys should receive the death penalty.

They were… pic.twitter.com/lAZLxBdjHV

— BrooklynDad_Defiant!☮️ (@mmpadellan) March 31, 2023

“During the hours of relentless interrogation we all endured, detectives repeatedly lied to us,” Salaam, Kevin Richardson, and Raymond Santana wrote in a 2019 op-ed for The New York Times, describing themselves as “frightened boys” at the time.

Trump indicted Thursday on 34 counts over alleged hush money payments to Stormy Daniels in 2016

The article continues: “They said they matched our fingerprints with traces from the crime scene and told each of us that the others had confessed and implicated us in the attack. They said that if we only admitted taking part in the attack, we could go home. All of these were blatant lies.”

The shadow room reported that Trump was indicted Thursday by a Manhattan grand jury on 34 counts for making $130,000 in hush money payments to adult film star Stormy Daniels just days before the 2016 election.

The funds were paid to Daniels to keep quiet about an alleged affair between her and Trump a decade earlier.

Vince McMahon indicators two-year deal whereas WWE searches for patrons

World Wrestling Entertainment Inc. Chairman Vince McMahon is introduced during the WWE Monday Night Raw show at the Thomas & Mack Center August 24, 2009 in Las Vegas, Nevada.

Ethan Mueller | Getty Images

Vince McMahon has signed a two-year employment contract World Wrestling Entertainment.

The WWE chairman’s agreement dates back to Jan. 9, when he returned to the company, according to a securities filing. His deal comes about as WWE has been actively speaking with suitors.

As part of his most recent contract, which includes an annual base salary of $1.2 million that includes an incentive bonus target of 175% of that salary. If a deal were to go through, McMahon would receive a $2.4 million lump sum payout, plus his incentive bonus, which would be doubled and paid up front.

CEO Nick Khan told CNBC’s Morgan Brennan this week that it’s been a robust sale process so far, with many attractive bidders. Earlier in the week, CNBC’s David Faber, citing people familiar with the matter, reported that the trial was “hot and heavy”.

McMahon returned to the WWE Board of Directors in January and helped negotiate the sale. He resigned from his CEO role last June amid a cloud of sexual misconduct allegations from former WWE employees. He later announced his resignation.

At that time, his daughter Stephanie McMahon had taken over as co-CEO of WWE, a McMahon family business. She resigned in January following the return of Vince McMahon.

Last month, Khan told CNBC that McMahon was willing to step down from his position “if it’s the right deal.” The potential future involvement of McMahon, WWE’s controlling shareholder, has become an early sticking point in preliminary talks with some buyers, CNBC previously reported.

“Vince made it clear to me and the market that he doesn’t need to be involved in any bid or deal to move forward and he has kept his word on that as many of us predicted,” Khan said on CNBC earlier this week.

Khan added that since he’s been back for the past three months, McMahon has been “quite complementary to myself, too creative to have the expert on the business here if we want to reach out and have conversations.”

Additionally, according to the filing, his contract gives McMahon the rights to his “life story” and related intellectual property.

McMahon acquired the company from his father in 1982 and ran it until 2022. He even stepped into the ring several times. His contract agreement gives him the right to tell his life story with WWE, with a guarantee that he will not face any future lawsuits or retaliation out of business.

WWE stock is up about 34% so far this year, slightly outperforming the broader market amid intensifying sales talk.

TikTok, ByteDance gab Millionen für die Lobbyarbeit im Kongress aus

TikTok und seine Muttergesellschaft haben seit 2019 zusammen mehr als 13 Millionen US-Dollar für die Lobbyarbeit bei Regierungsbeamten ausgegeben – eine Anstrengung, die offenbar ins Stocken geraten ist, da der Gesetzgeber Vorschläge vorantreibt, die auf den Besitz der App durch ein chinesisches Unternehmen abzielen oder sogar versuchen, TikTok in den USA vollständig zu verbieten .

Wochen nachdem der republikanische Abgeordnete Ken Buck aus Colorado und Senator Josh Hawley aus Missouri Gesetze eingeführt hatten, die TikTok-Downloads landesweit sperren würden, erhielten die Mitarbeiter von Buck im Februar einen Anruf von Michael Beckerman, dem Leiter des US-Policy-Shops des Social-Media-Unternehmens eine Person in der Nähe von Buck.

Beckerman wies Bedenken von Bucks Mitarbeitern zurück, dass TikTok Kundendaten sammelt, und befürwortete die neue Initiative des Unternehmens, bekannt als Project Texas, erklärte diese Person. Project Texas ist das Bestreben von TikTok, seine US-Kundendaten in einem sicheren Hub zu platzieren, der vom Technologieriesen verwaltet wird Orakeldie die Bedenken der US-Regierung lindern soll, dass die Informationen könnten von der chinesischen Muttergesellschaft ByteDance oder Mitgliedern der Regierungspartei in China abgerufen werden.

Die Lobbyarbeit erfolgt inmitten der anhaltenden Bemühungen von TikTok, die Befürchtungen des Gesetzgebers herunterzuspielen, die die App verbieten wollen, die in den USA monatlich 150 Millionen aktive Nutzer hat Das Unternehmen hat versucht zu zeigen, dass es Bedenken hinsichtlich Benutzerinformationen ohne ein völliges Verbot ausräumen kann, aber die meisten Gesetzgeber bei eine umstrittene Anhörung über TikTok in diesem Monat schien nicht davon überzeugt zu sein, dass Project Texas dies angemessen tun würde.

Shou Zi Chew, Chief Executive von TikTok, sieht zu, wie er vor einer Anhörung des House Energy and Commerce Committee mit dem Titel „TikTok: How Congress can Safeguard American Data Privacy and Protect Children from Online Harms“ aussagt, während der Gesetzgeber die chinesische Video-Sharing-App unter die Lupe nimmt. auf dem Capitol Hill in Washington, 23. März 2023.

Evelyn Hockstein | Reuters

TikTok-CEO Shou Zi Chew sagte dem US-Gesetzgeber bei der Anhörung, dass in China ansässige Mitarbeiter von ByteDance möglicherweise betroffen sind Zugriff auf einige US-Daten von der App. Aber er versicherte ihnen, dass die Mitarbeiter diese Daten nicht mehr haben würden, sobald das Projekt Texas abgeschlossen sei.

Der anhaltende Lobbydruck und die Aussage von Chew haben die Bemühungen auf dem Capitol Hill, die Verbindungen von TikTok zu seinem chinesischen Eigentümer zu kappen oder den Zugriff auf die App einzuschränken, bisher nicht erstickt.

Brooke Oberwetter, eine Sprecherin von TikTok, bestritt kein Element dieser Geschichte. Sie verteidigte die Arbeit des TikTok-Teams in Washington und sagte, das Unternehmen versuche, die Datenschutz- und Sicherheitsbedenken des Gesetzgebers auszuräumen.

„Unser Team in Washington konzentriert sich – und war schon immer – darauf, Gesetzgeber und Interessengruppen über unser Unternehmen und unseren Service aufzuklären“, sagte Oberwetter. „Wir werden unsere Arbeit fortsetzen, um Gesetzgeber und die amerikanische Öffentlichkeit über unsere Fortschritte bei der Umsetzung von Project Texas aufzuklären, um nationale Sicherheitsbedenken auszuräumen, und wir werden weiterhin mit Gesetzgebern, Interessenvertretern und unseren Vergleichsunternehmen an Lösungen arbeiten, die die branchenweiten Probleme des Datenschutzes angehen und Sicherheit.”

TikTok-CEO Shou Zi Chew: Wir sammeln keine präzisen GPS-Daten

Einer der führenden Vorschläge, die auf TikTok abzielen, ist der RESTRICT Act, der von einer überparteilichen Gruppe von Senatoren unter der Leitung von Sens. Mark Warner, D-Va., und John Thune, RS.D., eingeführt wurde. Der Gesetzentwurf, der noch keine Begleitgesetzgebung enthält im Repräsentantenhaus, würde dem Handelsminister die Befugnis geben, nationale Sicherheitsrisiken im Zusammenhang mit bestimmten Technologietransaktionen mit Firmen oder Einzelpersonen in einer ausgewählten Gruppe ausländischer gegnerischer Länder, einschließlich China, zu bewerten. Der Handelsminister könnte dem Präsidenten empfehlen, Maßnahmen bis hin zu einem Verbot zu ergreifen.

Ein weiterer Vorschlag ist der DATA Act, der von Rep. Mike McCaul, R-Texas, eingeführt wurde. Es würde Schutzmaßnahmen aufheben, die kreative Inhalte normalerweise vor US-Sanktionen geschützt haben. Es würde den Präsidenten auch beauftragen, Sanktionen gegen in China ansässige Unternehmen zu verhängen, die sensible personenbezogene Daten von Amerikanern an Einzelpersonen oder Unternehmen in China übermitteln. Der Vorschlag wurde entlang der Parteilinien durch den von der GOP geführten Ausschuss für Außenbeziehungen des Repräsentantenhauses geleitet, wobei die Demokraten befürchteten, er sei überstürzt.

Am äußersten Ende des Extrems befindet sich die Gesetzgebung von Hawley und Buck, die einfach darauf abzielt, TikTok vollständig zu verbieten, indem sie den Präsidenten anweist, Transaktionen mit ByteDance zu blockieren.

Seit dem Anruf bei Beckerman hat Buck nicht zurückgehalten, die App als Bedrohung für die nationale Sicherheit zu bezeichnen. Die Mitarbeiter von Buck antworteten Beckerman, dass sie immer noch besorgt über die Datenschutz-, Cybersicherheits- und nationalen Sicherheitsrichtlinien des Unternehmens seien, sagte die Person, die Buck nahe steht.

Ein anderer Verbündeter des Gesetzgebers aus Colorado sagte, das Geld für die Lobbyarbeit sei verschwendet, um zu versuchen, Bucks Meinung zu ändern. „Es ist, als würden sie ihr Geld anzünden“, sagte ein mit Buck verbündeter republikanischer Stratege gegenüber CNBC.

Ein anderer GOP-Stratege, der mit den Lobbying-Bemühungen von TikTok vertraut ist, sagte CNBC, dass der „Last-Minute-Blitz“ des Unternehmens, Wochen vor Chews Aussage, Lobbying auf dem Capitol Hill zu betreiben, „Amateurstunde“ war. Die Person sagte, Kongressbüros hätten zeitweise Treffen mit Unternehmensvertretern abgelehnt und TikTok-Beamte hätten sich nicht an wichtige Gesetzgeber wie Hawley gewandt, die die App ins Visier genommen hätten.

Hawley hat seine Kampagne zum Verbot von TikTok nicht gelockert. Er versuchte am Mittwoch, die einstimmige Unterstützung des Senats zu gewinnen, um seinen Gesetzentwurf zu beschleunigen. Sen. Rand Paul, ein Republikaner aus Kentucky, der jetzt zu der kleinen Gruppe von Gesetzgebern beider Parteien gehört, die sich gegen die Bemühungen gestellt haben, den Zugriff auf die App zu sperren, blockierte Hawleys Gesetzgebung. Während es viele Gesetzgeber gibt, die noch nicht zu dem Schluss gekommen sind, dass ein Verbot notwendig ist, haben nur eine Handvoll dies offen ausgeschlossen.

Diejenigen, die es ablehnten, in dieser Geschichte genannt zu werden, taten dies, um frei über private Gespräche und Treffen zu sprechen. Eine Hawley-Sprecherin antwortete nicht auf eine Bitte um Stellungnahme.

Die Interaktion mit Bucks Team ist nur einer von vielen Fällen, in denen Lobbyisten von TikTok oder seiner in China ansässigen Muttergesellschaft ByteDance gesehen haben, wie ihre Kampagnen auf dem Capitol Hill auf taube Ohren gestoßen sind, so Berater und Helfer von Kongressabgeordneten. Die Tatsache, dass einige Gesetzgeber wenig Interesse gezeigt haben, TikTok-Führungskräfte anzuhören, ist das jüngste Anzeichen dafür, dass das Unternehmen möglicherweise mehr Verbündete im Kongress braucht, um neue Beschränkungen für die App oder ein mögliches Verbot zu verhindern.

House Speaker Kevin McCarthy zum TikTok-Verbot: Die letzte Regierung hatte Recht

Laut einer Person bei der Versammlung im Büro des Senators traf sich Warner Anfang dieses Jahres mit TikTok-Lobbyisten. Der Gesetzgeber von Virginia und Thune stellten später ihren Gesetzentwurf vor, der den Handelsminister ermächtigen würde, gegen TikTok vorzugehen. Das Weiße Haus hat das Gesetz inzwischen gebilligt und den Kongress aufgefordert, es zu verabschieden, damit Präsident Joe Biden es unterzeichnen kann.

Warners Büro antwortete nicht auf eine Bitte um Stellungnahme.

TikTok scheint seine Lobbyarbeit kurz vor Chews Aussage vor dem Ausschuss für Energie und Handel des Repräsentantenhauses verstärkt zu haben. Das Unternehmen flog TikTok-Influencer vor der Veranstaltung nach Washington.

Das Unternehmen hatte auch Verbündete in a eine Handvoll demokratischer Gesetzgeber wie Rep. Jamaal Bowman, DN.Y. Einen Tag vor der Anhörung hielten er und bekannte Ersteller von Inhalten der App eine Pressekonferenz ab, um sich gegen ein mögliches Verbot zu wehren.

Aber in privaten Treffen sagten einige dieser Influencer Bowman, dass es Vorschriften geben müsse, um ihre Daten auf allen Social-Media-Plattformen, einschließlich TikTok, zu schützen und gleichzeitig die App intakt zu halten, so ein mit den Diskussionen vertrauter Berater.

Ungeachtet ihrer Auswirkungen auf den Gesetzgeber scheinen die Bitten der Entwickler, den Zugang zu TikTok in den USA aufrechtzuerhalten, bei vielen amerikanischen Benutzern Anklang zu finden, die die App als Quelle für Unterhaltung, Informationen und sogar Einkommen sehen. Während und nach der Anhörung teilten TikTok-Benutzer Clips von Gesetzgebern, die dem CEO grundlegende Fragen stellten, und verspotteten den Kongress für das, was sie als mangelndes Verständnis der Technologie ansahen.

Aber basierend auf den fünf Stunden angespannter Befragung durch Mitglieder beider Parteien bei der Anhörung schienen die Appelle der Schöpfer die tiefen Bedenken der Gesetzgeber über die Verbindungen der App nach China sowie die süchtig machenden und potenziell schädlichen Eigenschaften nicht auszugleichen Design.

„Ich glaube nicht, dass sie irgendwelche Gesetzgeber überzeugt haben“, sagte Alex Moore, Kommunikationsdirektor des Abgeordneten Jan Schakowsky, D-Ill., über die Lobbyarbeit von TikTok vor der Anhörung. Das Einbeziehen von TikTok-Erstellern, um die Botschaft des Unternehmens zu verstärken, „hat meinen Chef nicht beeinflusst“, fügte Moore hinzu.

Dennoch sagte Moore, sein Büro habe seit der Anhörung viel von den Wählern gehört. Vor der Zeugenaussage würden Anrufe über TikTok „einsickern“, sagte er. Aber danach „klingelten unsere Telefone ununterbrochen“, und die Mehrheit der Anrufer sprach sich gegen ein TikTok-Verbot aus.

„Wir haben mit überwältigender Mehrheit gehört, dass unsere Wähler daran nicht interessiert sind“, sagte er.

Während ein solcher Anruf oft „heiß beginnt“, sagte Moore Bestandteile neigte zur Beruhigung, als Mitarbeiter erklärten, dass Schakowsky eine umfassende Datenschutzgesetzgebung wünsche, um andere Unternehmen für ähnliche Datenpraktiken nicht “aus der Klemme zu lassen”.

Schakowsky sagte CNBC unmittelbar nach der Anhörung, dass es wahrscheinlich noch „weitere Diskussionen“ darüber geben wird, wie die Bedenken angegangen werden können, die direkt mit dem chinesischen Eigentum von TikTok zusammenhängen. Aber Schakowsky, die die parteiübergreifende Datenschutzgesetzgebung mitgetragen hat, die vom Ausschuss beim letzten Kongress verabschiedet wurde, sagte, sie hoffe, dass die Anhörung dem Schutz der Privatsphäre neuen Schwung verleiht, der auch für andere große Technologieunternehmen gelten würde.

Verbundene Lobbyarbeit

Die Lobbyarbeit von TiKTok und ByteDance ist direkt miteinander verbunden.

Die vierteljährlichen Lobbying-Berichte von ByteDance zeigen, dass alle internen Lobbyisten für TikTok arbeiten. Dazu gehören Beckerman, der einst als politischer Direktor für den ehemaligen GOP-Abgeordneten Fred Upton aus Michigan arbeitete, sowie Freddy Barnes, der im Büro des Sprechers des republikanischen Repräsentantenhauses, Kevin McCarthy, tätig war.

TikTok selbst hat eine eigene Legion externer Lobbyisten angeheuert. Zu den neuesten Rekruten gehören der ehemalige Abgeordnete Jeff Denham, R-Calif., und Ankit Desai, ein ehemaliger Berater von Biden, als er Mitglied des US-Senats war.

ByteDance und TikTok haben zusammengenommen seit 2019 über 13 Millionen US-Dollar für Lobbyarbeit auf Bundesebene ausgegeben, laut Offenlegungsberichten und von OpenSecrets geprüften Daten.

Der Großteil der Ausgaben für Lobbyarbeit im Zusammenhang mit der Social-App stammt von ByteDance. Die Muttergesellschaft von TikTok gab im Jahr 2022 5,3 Millionen US-Dollar für Lobbyarbeit auf Bundesebene aus, ein neuer Rekord für das Unternehmen, so das überparteiliche OpenSecrets.

TikTok selbst hat seit 2020 etwas mehr als 900.000 US-Dollar für externe Lobbying-Berater ausgegeben.

ByteDance auch über 400.000 US-Dollar im vergangenen Jahr an gemeinnützige Gruppen gespendet, die mit Mitgliedern des Kongresses für „Ehrenausgaben“ verbündet sind, heißt es in einer Akte.

Das Dokument zeigt, dass ByteDance zusammen 300.000 US-Dollar an das Congressional Hispanic Caucus Institute und die Congressional Black Caucus Foundation gespendet hat, Gruppen, die mit überwiegend demokratischen Caucuses im Repräsentantenhaus verbunden sind. Jede dieser Organisationen listet Jesse Price, einen Public Policy Director bei TikTok, entweder als Mitglied des Board of Directors oder des Beirats auf.

Beckerman, der führende TikTok-Lobbyist, unterzeichnete den Bericht, der die von ByteDance geleisteten Beiträge zeigt.

Laut Offenlegungsberichten haben TikTok und ByteDance seit 2020 auch Bidens Exekutivbüro im Weißen Haus mit Lobbyarbeit ins Visier genommen.

Das Weiße Haus antwortete nicht, als es nach weiteren Einzelheiten der Lobbyarbeit gefragt wurde.