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Speaker 1: You're listening to the Saturday Morning with Jack Tame podcast

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Speaker 1: from News Talks a'd be.

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Speaker 2: Than Our Textbook. Paul sten Houses here and Paul, we

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Speaker 2: are learning more about how the tick top deal is

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Speaker 2: going to look and just how much money is going

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Speaker 2: to be going back to China once the US government

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Speaker 2: signs this thing off.

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Speaker 3: Yeah, they are doing too bad, to be honest, Jack.

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Speaker 3: The estimates are that about fifty percent of the profits

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Speaker 3: of this new entity will be making their way back

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Speaker 3: to China through various different means, which I guess isn't

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Speaker 3: I mean, it's not great if you have a Byte Danced,

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Speaker 3: But at the same time, if your other option was

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Speaker 3: well not being able to operate in the United States,

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Speaker 3: then I guess that's not terrible. Yeah. I think it's

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Speaker 3: going to be like, you know, into the single digit

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Speaker 3: billions every year going back to Byte Dance. But it's

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Speaker 3: interesting that this isn't just an ownership play in US

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Speaker 3: Vice President Jady Vance put a price tag on the

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Speaker 3: sale this week. He said it fourteen billion dollars, which

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Speaker 3: was really low compared to the thirty five to forty

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Speaker 3: billion dollars at the end that the analysts were expecting.

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Speaker 3: And the reason for that is this kind of bizarre

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Speaker 3: setup that I've got because not only will they be owners,

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Speaker 3: and they'll be less than twenty percent owners, so it

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Speaker 3: works within the law, but they're also going to be

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Speaker 3: getting a licensing fee for their algorithm, so they'll get

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Speaker 3: that just cash in hand effectively. And then they're also

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Speaker 3: going to be getting profit sharing, right, so a unique arrangement,

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Speaker 3: but they're kind of getting value, I guess, in three ways,

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Speaker 3: which isn't too bad. And on the US side of

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Speaker 3: this deal, some names you've probably heard of, first of all,

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Speaker 3: Oracle with Larry Allison's his company Oracle is currently already

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Speaker 3: hosting US the TikTok Us data that are going to

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Speaker 3: take on the algorithm, as well a couple of other names,

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Speaker 3: Rupert Murdoch of Fox News and News Corp. Fame and

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Speaker 3: Michael Dell of Dell Computers. So they're just a couple.

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Speaker 3: There's a big VC names and things in there as well,

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Speaker 3: but it's really kind of all of the all of

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Speaker 3: the big names wanting to get in on the US

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Speaker 3: TikTok deal.

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Speaker 2: Yeah right, no, Steenhouse just yet though, I take it.

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Speaker 3: No, you know, they didn't almost a look at.

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Speaker 2: The almost So do you reckon that other countries are

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Speaker 2: going to take the US version of it then or

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Speaker 2: will they take the current version, the Chinese version?

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Speaker 3: Well, at the moment, there's only one version that they

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Speaker 3: can take, and it's the the version that China will

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Speaker 3: be giving the rest of the world as well. But

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Speaker 3: it's certainly a question that has been posed in Australia,

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Speaker 3: where one of the Senate is there suggested that if

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Speaker 3: the deal went ahead and there is a US version,

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Speaker 3: Australia probably should be on the US version, right because

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Speaker 3: if the US is wanting to do this, well, if

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Speaker 3: the US is trying to do this for national security

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Speaker 3: reasons and you're an ally friend partner of the United States,

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Speaker 3: you probably want to go to the other one. But

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Speaker 3: who's to say they'll let the How would that even work?

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Speaker 3: It all starts getting into some kind of bizarre gray

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Speaker 3: areas there.

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Speaker 2: Yeah, right, Hey, ad free Facebook and Instagram is being

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Speaker 2: introduced in the UK.

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Speaker 3: Yeah, I kind of would like that. I get a

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Speaker 3: lot of ads on my Instagram. I don't know about you,

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Speaker 3: but I feel like sometimes they double and triple them

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Speaker 3: up on me.

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Speaker 2: But would you pay for it? Paul? Would you pay well.

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Speaker 3: Look, hey Si, here's the thing, right, The saying always

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Speaker 3: is is that if you're not paying for it, you

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Speaker 3: are the product. And interestingly you've now got a price.

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Speaker 3: So depending on the platform, it's going to be either

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Speaker 3: three pounds or four pounds a month to get an

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Speaker 3: ad free version of Facebook or Instagram. The UK has

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Speaker 3: really been pushing to make sure that if you don't

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Speaker 3: want to be the product, there's a way out of it,

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Speaker 3: and that you still get access to these products because

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Speaker 3: the bit of a utility these days, things like Facebook

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Speaker 3: and Instagram, right, so if you don't like the terms

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Speaker 3: and conditions, they're really trying to give you another pathway.

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Speaker 3: But here's the number, Jack. It works out to be

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Speaker 3: that you are worth to Meta based on those UK numbers,

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Speaker 3: sixty five US dollars a year. That's about one hundred

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Speaker 3: and ten New Zealand dollars a year. That's what you're

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Speaker 3: worth to them.

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Speaker 2: Feel good or bad? Why that figures? I mean, it

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Speaker 2: is amazing. Just that's you, that's your data, as you say,

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Speaker 2: but yeah, that's probably about what I would have anticipated.

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Speaker 2: The trick is, of course, when you've got a bid

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Speaker 2: in the news as worldwide, how you're able to massively

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Speaker 2: massively ramp up that revenue and profits. Thanks so much, Paul,

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Speaker 2: That's our textbook. Paul Steinhouse.

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Speaker 1: For more from Saturday Morning with Jack Tame, listen live

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