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Wednesday, March 13, 2024

What a busy media news day! Don Lemon's partnership with Elon Musk goes down in flames, Jeff Zucker's Telegraph takeover appears doomed, Michael Kassan wars with UTA, Ron DeSantis blasts "Libs of TikTok," OpenAI readies Sora for a public launch this year, Olivia Munn reveals a breast cancer diagnosis, HBO renews "Real Time," Sydney Sweeney talks "Madame Web" disaster, and so much more. But first, the A1.

THE A1

TikTok's Last Dance

CNN Photo Illustration/House TV

TikTok is in trouble — more trouble than it has ever found itself in before.

The popular short-form video platform's future in the U.S. is uncertain after the House overwhelmingly passed legislation that could ultimately ban it from operating in the country, an extraordinary move that would have an enormous impact on millions of Americans who rely on the app for their information, entertainment, and business needs.

The rare bipartisan move by lawmakers reflects growing anxiety about the influence wielded by Beijing, particularly over the far-reaching information and entertainment sector that has enormous influence over the public discourse and can ultimately work to shape U.S. policy.

The legislation that was passed Wednesday, by a margin of 352 to 65, would give TikTok's Chinese parent ByteDance six months to spin off its U.S. operation. But China has said in the past that it "firmly opposes" such a sale and it is unclear whether Beijing would allow a deal to take place. It's also not clear who would purchase the platform, given the likely antitrust concerns that could emerge if another Big Tech company were to show interest. TikTok has repeatedly argued that the legislation is an outright ban, only one that is disguised like a wolf in sheep's clothing.

In recent years, ByteDance has come under heavy scrutiny from U.S. lawmakers over its handling of user data, including the admission its employees spied on American journalists who had reported on the company. But that has not allayed concerns that Beijing could still pressure the company to tweak its powerful algorithm to influence U.S. users on anything from the Israel-Hamas war to high-stakes elections.

"This legislation has a predetermined outcome: a total ban of TikTok in the United States," the company reiterated Wednesday. "The government is attempting to strip 170 million Americans of their Constitutional right to free expression. This will damage millions of businesses, deny artists an audience, and destroy the livelihoods of countless creators across the country."

TikTok has for years been trying to quell concerns about foreign influence. In 2022, as part of "Project Texas" it agreed to move all U.S. personal data to Oracle servers, with the cloud computing giant also auditing the source code to ensure that it wasn't being manipulated by outsiders. The company has actually started already implementing Project Texas. But CFIUS, which was conducting a review, has been MIA (I'm told that CFIUS and TikTok have not talked for months), frustrating Congress and causing it to shift into action.

The House legislation will now head to the Senate where it faces an uncertain future. Senate Majority Leader Chuck Schumer said in a statement that the upper chamber of Congress will "review the legislation," but has been noncommittal about whether to put it on the floor for a vote. President Joe Biden, whose campaign recently launched its own TikTok account just last month, has said he will sign the bill into law, should it arrive on his desk.

Not only has Biden's campaign recently showed support for the platform by posting on it as recently as Wednesday, but the tough-on-China Donald Trump, who targeted the platform while he was in office, has entirely reversed his position in recent days and vocally opposed a ban on TikTok. In other words, the leaders of both the Republican and Democratic parties have, in their own ways, shown some support for the app.

But in Congress, cracking down on TikTok has become one of the rare issues in which legislators have agreed upon on a bipartisan basis. The Democratic and Republican leaders of the Senate Intelligence Committee, Mark Warner and Marco Rubio, issued a statement affirming just as much after Wednesday's House vote.

"We are united," the duo said in a joint statement, "in our concern about the national security threat posed by TikTok – a platform with enormous power to influence and divide Americans whose parent company ByteDance remains legally required to do the bidding of the Chinese Communist Party."

It will now be up to TikTok to persuade the Senate to allow it to operate in the country — and the company is not wasting any time getting started. I'm told that TikTok chief Shou Zi Chew will be on Capitol Hill Thursday meeting with Senate lawmakers.

CLOCK TICKS ON TIKTOK

TikTok told staffers its business as usual following the vote. (Bloomberg)
Creators have taken to the streets to protest the bill's passage. (Axios)
In a message posted to TikTok, Shou Zi Chew thanked creators for voicing their concerns with Congress. (TikTok)
Some lawmakers expressed concern about how fast the TikTok bill made its way through the House: "Rarely do I see any legislation move with this urgency," Alexandria Ocasio-Cortez said. "I am not really getting any sort of sufficient answer as to what is prompting the urgency here." (WaPo)
"Who wins if TikTok is banned? It's more complex than it looks," writes Dan Gallagher. (WSJ)
"TikTok's best days in the U.S. may be behind it, anyway. The long-term viability of a social-media app is dependent on its ability to bring in new users, and TikTok's growth has flatlined," writes Kate Lindsay. (The Atlantic)
An interesting part of this: "The prospect that the app will be banned has thrust Jeff Yass, the trading mastermind behind market-maker Susquehanna International Group, into an uncomfortable spotlight," reports Tom Maloney. "That's because he owns a stake in TikTok's parent company, ByteDance, that's worth $15 billion." (Bloomberg)

——— BELOW THE FOLD ———

CNN Photo Illustration/Matt Baron/Shutterstock

Telegraph Takeover Trouble: Jeff Zucker's ambitious bid to acquire the Telegraph and Spectator is hanging by a thread. The former CNN chief turned Redbird IMI investor hoped to add to his string of media acquisitions and purchase the storied U.K. outlets with his UAE-backed billion-dollar war chest. But after concerns were raised over the last few months about the Emirati funding, the U.K. government on Wednesday moved to prohibit foreign ownership of news publications, an all but fatal blow to Zucker's efforts. "We are extremely disappointed by today's development," a Redbird IMI spokesperson said in a statement. The spokesperson went on to say that the deal had always "been a fully commercial undertaking," adding, "We remain committed to developing powerful and commercially sustainable global media assets. We will now evaluate our next steps, with commercial interests continuing to be the sole priority." The NYT's Michael M. Grynbaum and Mark Landler have more here.

🔎 Zooming in: Between the U.S. House passing a bill to force China's ByteDance to spin off TikTok and the U.K. moving to prohibit foreign ownership of news publications, Wednesday was, as Semafor's Ben Smith put it on that social media platform we do not link to, a "big day for Western governments intervening on issues of media ownership."

THE INFO WARS

CNN Photo Illustration/Don Lemon/X

Musk Sours on Lemon: Who will win in court? That's where Don Lemon and Elon Musk seem to be headed after the unhinged billionaire canceled X's partnership with the former CNN anchor's new web-based media company. The cancelation occurred hours after Lemon recorded what he described as a "tense" sit-down interview with Musk for the debut episode of "The Don Lemon Show," which publishes online Monday. During the interview, which Lemon said was granted without restrictions, the media personality asked Musk about a wide-range of topics. But it seems Musk did not appreciate being confronted on certain issues, such as his ketamine drug use, the Great Replacement theory, and his government security clearance. In an interview with CNN's Erin Burnett on Wednesday night (his first since being ousted from the network last year), Lemon spoke about his exchange with Musk, saying, "He seemed really averse to facts."

Musk is also notoriously averse to paying his bills, so it's hard to imagine that he will pay Lemon without a legal battle. Allison Gollust, a spokesperson for Lemon, told me that the host "has a deal with X and expects to be paid for it" and "if we have to go to court we will." Lemon technically had not inked a contract with X, I'm told. But contracts do not necessarily have to be signed to be legally binding, particularly if it is clear each side had arrived at a mutual understanding. And Lemon's camp is confident that a deal had effectively been struck, as evidenced by the fact that X had touted the deal in public announcements earlier this year. Moreover, Musk himself appeared to acknowledge that there had been a deal. As Semafor's Max Tani first reported, Musk texted Jay Sures, the UTA power agent who represents Lemon, "contract is canceled." Here's my full story.

🔎 Zooming in: That this partnership went down in flames is one of the least surprising things to happen. Peter Kafka captured that well with a headline that jokingly asked, "Who could have possibly foreseen that Elon Musk would be capricious and erratic except for everyone who has watched him for years?" Indeed, while Musk has claimed to believe in free speech absolutism, he has repeatedly taken steps to limit the speech of critics. Musk has at times suspended journalists from his platform, filed lawsuits against watchdogs for publishing reports critical of X, and even throttled URLs belonging to The NYT. Musk has also frequently launched ugly attacks on journalists and elevated conspiracy theories and right-wing extremists. Which is all to say, it's not too surprising that he soured on 🍋.

IN THE BATTLEFIELD

Aaron Rodgers, the NFL quarterback who has become a right-wing media celebrity for his anti-vaccine and anti-media views, shared appalling Sandy Hook conspiracy theories in private conversations, Pamela Brown and Jake Tapper report. (CNN)
Speaking of Sandy Hook conspiracy theories, Chris Vognar writes that HBO's forthcoming documentary on Alex Jones "offers a haunting trip into malicious madness." (Chron)
Jones might have stopped spreading Sandy Hook theories after being sued into oblivion, but he's still sharing plenty of others. He told Steve Bannon that the Democrats are "trying to steal this election again." (MMFA)
You hate to see it: Ron DeSantis blasted "Libs of TikTok," accusing them of "lying" and saying "truth shouldn't be a casualty of attempts to generate clicks and engagement farm." (Mediaite)
Fox News "ran at least 388 weekday segments that featured significant discussion of 'migrant crime' from January 1 through March 8," Matt Gertz reports. (MMFA)
Valuetainment, which produces the "PBD Podcast," announced that NewsNation anchor Chris Cuomo "will be joining" its team "as a talent partner." The company said he will be a "rotating guest" on the podcast, which is popular in right-wing circles. (Instagram)
Neil Young announced he will once again make his music available on Spotify, ending his boycott of the music streamer over its decision to platform misinformation via the "Joe Rogan Experience." (Billboard)

THE INDUSTRY

CNN Photo Illustration/Bridget Bennett/Bloomberg/Getty Images

Kassan vs. UTA: Did he resign? Was he fired? UTA and MediaLink boss Michael Kassan are in an exchange of a war of words — and lawsuits. In Kassan's telling, UTA violated the agreement the two entered into when the agency purchased MediaLink in 2021. That, according to Kassan's camp, led to the advertising/consulting guru resigning and filing a lawsuit against UTA. UTA, however, has put out its own version of events. The company, which filed its own suit against Kassan, said that it fired the MediaLink founder after "an exhaustive third-party investigation into misappropriation of company funds." Deadline's Domnic Patten breaks it down here.

► Puck's Dylan Byers nails the value Kassan brought to clients: "In essence, Kassan was an access peddler, the media industry's archetype of the Gladwellian connector. He had everyone on speed dial and shook hands at every table at the Polo Lounge, and for a price he would provide that access to his clients — a total agent and packager of the highest order."

Sciutto Sets the Record Straight: Jim Sciutto is working to combat right-wing media lies about Russia. The CNN anchor this week released his latest book, "The Return of Great Powers," which goes into detail about the threat Vladimir Putin poses the Western world. In other words, it runs counter — and frankly dismantles — the absurd propaganda pushed by dishonest right-wing media figures like Tucker Carlson. As Sciutto told me, "There is a fascination among some on the right and in the right wing media about Russia and Putin that is belied by the facts and what he stands for. I spoke to leaders from the left and right, military commanders and intelligence officials all over the world for this book – from the U.S. to Europe to Asia - and one thing they're clear on is that Russia has no good intentions when it comes to the US. In fact, Putin is all in on bringing the US down."

THE FOURTH ESTATE

BBC News has started streaming for free on a number of services, Alex Weprin reports. (THR)
Bill Grueskin writes about "what we have learned from that long, strange" letter Bill Ackman's attorney sent Business Insider. (CJR)
Meta said it's ready to ban news in Illinois if the state passes its new Journalism Preservation Act, which would mandate that online companies compensate local news publishers for any work viewed by residents across their platforms. (The Verge)
Sports Illustrated and its swimsuit edition will be "broken apart," A.J. Perez reports, citing sources. (Front Office Sports)
The NYT is staving off Wordle copycats with copyright takedown notices, Wyatte Grantham-Philips and Gaetane Lewis report. (AP)
The Craig Newmark Graduate School of Journalism at CUNY condemned Russia's targeting of Mikhail Zygar — a Russian journalist and the inaugural Press Freedom Fellow at the university — with a criminal investigation for allegedly spreading fake news with his analysis of "atrocities committed by the Russian military in Ukraine." (CUNY)
The Fallen Journalists Memorial Foundation selected John Ronan Architects to design and construct its memorial. (Fallen Journalists)
The reviews are coming in for "The Girls on the Bus." The forthcoming Max drama, inspired by Amy Chozick's "Chasing Hillary," currently boasts a 67% score on Rotten Tomatoes. CNN's in-house critic, Brian Lowry, however, was less than impressed. Lowry wrote that journalism "could use a smart show about reporting," but that this "isn't it." (CNN)
The 2024 Anthony Shadid Award for Journalism Ethics was awarded to NBC News' Jon Schuppe, Mike Hixenbaugh, and Rich Schapiro. (CJE)
Chris Wallace is releasing a new book set to be published Oct. 8. (AP)

IN THE MARKET

Paramount Global sold a 13% stake in Viacom18 to majority owner Reliance Industries for $517 million. (Variety)
Disney and Trian Fund Management continued to exchange blows, with the latter saying, with no apparent hint of irony, that it is "disappointed that Disney is running a scorched-Earth campaign." (Deadline)
Meanwhile, Jamie Dimon endorsed Bob Iger in the proxy fight. (CNBC)
Ted Sarandos told Rob Lowe that A.I. cannot replace filmmakers, saying that there is "no shortcut for the human experience." (Deadline)

MEDIA MOVES

John Bogusz, CBS Sports' ad chief, will step down. (Variety)
CNN promoted Priscilla Alvarez to White House correspondent. (CNN)
The Hill announced Amie Parnes as a senior correspondent. (The Hill)

THE VALLEY

CNN Photo Illustration/Patrick T. Fallon/AFP/Getty Images

Sora Ready to Soar: Get ready for Sora to hit the public market this year. That's according to OpenAI executive Mira Murati, who told The WSJ's Joanna Stern that she is "hoping" the company's powerful text-to-video generator will "definitely" be out this year. "It could be a few months," Murati said. Stern asked Murati if that would mean the powerful new technology could be available for mass use ahead of the November elections. "That's certainly a consideration, dealing with issues of misinformation and harmful bias," Murati said. "And we would not be releasing anything we don't feel confident on when it comes how it would affect local elections or other issues." Watch the full interview here.

TOO MANY TABS

Clive Cook suggests that Gemini's "bad" rollout "did the world a favor" by raising "vital questions about artificial intelligence that deserve more attention." (Bloomberg)
Back and forth: Epic Games accused Apple of violating its App Store injunction, urging a judge to hold the company in contempt. (Reuters)
Mike Isaac chronicled Reddit's path to IPO. (NYT)
Anita Ramaswamy argues that Reddit's "reliance on search engines" poses a "fundamental risk" to its business. (Reuters)
YouTube is "revamping its TV app to make videos feel way more interactive," Chris Welch reports. (The Verge)

CURTAIN CALL

CNN Photo Illustration/Frazer Harrison/Getty Images

Munn's Cancer Message: Olivia Munn on Wednesday revealed that she has been battling breast cancer, saying she was going public about her diagnosis hoping it will "help others find comfort, inspiration, and support on their own journey." Munn said in an Instagram post, which included photos of her in the hospital, that she tested negative for "90 different cancer genes" in February 2023, but that she was soon after diagnosed with breast cancer. Moon revealed that over the past 10 months she has had four surgeries, including a double mastectomy. She encouraged others to calculate their Breast Cancer Assessment Score to help them catch the disease early on. "Because of that score I went to get an MRI, which led to an ultrasound, which then led to a biopsy," she wrote. CNN's Lisa Respers France has more.

OFF STAGE

HBO renewed "Real Time With Bill Maher" through 2026. (Deadline)
Sydney Sweeney commented on the disaster known as "Madame Web," saying she went "along for the ride." (Variety)
"Oppenheimer" and "The Holdovers" boosted Peacock's viewership during Oscars weekend. (Deadline)
Timothée Chalamet has earned the laurels of a Hollywood A-lister, Tatiana Siegel and Rebecca Rubin write, which includes a salary boost buoyed by box office hits. (Variety)
Cillian Murphy has been tapped for a Versace campaign. (THR)
Stephen Colbert said CBS asked that he not share Kristen Stewart's Rolling Stone cover on air — which he did regardless. (The Wrap)
Rick Porter noted that while the strikes delayed television's top hits, "audiences came back." (THR)
"The Bear" creator Christopher Storer will adapt and direct "The Lincoln Highway" for Warner Bros. (Deadline)
Sony announced the third installment of its Tom Hardy-led "Venom," titled "Venom: The Last Dance," will hit theaters on Oct. 25. (THR)
The second season of "Open Range," which stars Josh Brolin, will hit Prime Video on May 16. (The Wrap)
Netflix released the trailer for "Atlas," starring Jennifer Lopez. (YouTube)

Thank you for reading! This newsletter was edited by Jon Passantino and produced with the assistance of Liam Reilly. Have feedback? Send us an email. You can follow us on Instagram, Threads, and LinkedIn. We will see you back in your inbox tomorrow.

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