Core Insights - TikTok is expanding its short-form entertainment offerings by introducing "Minis," which allows users to watch micro dramas within the app [1][2] Group 1: TikTok's New Feature - TikTok has launched a Minis section that includes mini games and mini drama apps, designed for mobile-first consumption with multiple short episodes [2] - The new feature aims to reduce friction for users by enabling them to sample episodes directly in the app before making any external purchases [2][3] - TikTok views Minis as an extension of its successful TikTok Shop, keeping user engagement and transactions within its ecosystem [3] Group 2: Monetization Strategy - Micro dramas typically follow a freemium model, allowing viewers to watch a limited number of episodes for free before requiring payment, often around $10 or more per title, or a subscription fee ranging from $40 to $80 per month [4] - Within TikTok Minis, some apps provide discounts for users who pay directly through TikTok, promoting in-app purchases over external downloads [4] Group 3: Industry Impact - The market for short-drama apps is projected to generate $3 billion in global revenue this year, excluding China, indicating significant growth potential [5] - Major entertainment studios are closely monitoring this trend, with Fox Corp. investing in micro-drama startups and Walt Disney Co. exploring adaptations for vertical formats [5] Group 4: Regulatory Developments - ByteDance is taking steps to transfer control of TikTok's U.S. operations to a consortium led by Oracle Corp. to mitigate regulatory risks and prevent a potential ban [6][7] - This move aims to address concerns regarding user data access by the Chinese government, which ByteDance has consistently denied [7]

Core Viewpoint - SeeYA Technology Co., Ltd. is set to become China's first publicly listed company focused on silicon-based OLED display chips following the approval of its IPO application by the Shanghai Stock Exchange's Listing Review Committee on December 24, 2025 [1] Company Overview - SeeYA is a micro-display solutions provider that ranked second globally in silicon-based OLED shipments for XR devices in 2024, holding a 35.2% market share, behind Sony's 50.8% [2] - The company's products have been shipped to notable clients including ByteDance, Insta360, RayNeo, and Lenovo [2] IPO Details - The IPO aims to raise approximately RMB 2.015 billion (about USD 278 million), primarily for the expansion of production lines [3] - Revenue increased from RMB 190 million (about USD 26.2 million) in 2022 to RMB 280 million (about USD 38.6 million) in 2024 [3] - The company anticipates achieving profitability by 2026 [3]

Group 1 - ByteDance plans to increase its capital expenditure on AI to $23 billion (RMB 160 billion) in 2026, up from RMB 150 billion in 2025 [1] - More than half of the 2026 expenditure will be allocated to acquiring advanced semiconductors for AI model and application development [1] - A deal involving Oracle, Silver Lake, and MGX will result in them collectively owning 45% of a U.S. entity, with ByteDance retaining nearly 20% [1] Group 2 - Publicly traded companies in the social media sector include Meta Platforms, Pinterest, Reddit, and Snap [1]

Group 1: Novo Nordisk - The US FDA has approved an oral version of Novo Nordisk's Wegovy (semaglutide), marking it as the first GLP-1 oral treatment approved for obesity [3][4] - The approval was based on the OASIS 4 trial, which demonstrated a mean weight loss of 16.6% in adults who were obese or overweight with comorbidities when taking 25 mg of oral semaglutide daily [4] - Novo Nordisk's shares rose approximately 7% in premarket trading following the announcement [4] Group 2: Mercedes-Benz - Mercedes-Benz USA and parent company Daimler AG have agreed to a settlement of $149.6 million over diesel emissions allegations with 48 U.S. states, Puerto Rico, and the District of Columbia [4][5] - The settlement includes a payment of $120 million to the attorneys general, with an additional $29 million payment suspended pending the completion of a consumer relief program [6] Group 3: ByteDance - ByteDance plans to allocate approximately 160 billion yuan (~$22.77 billion) in capital expenditure for 2026, focusing primarily on AI infrastructure development [6][7] - About half of the budget, around 85 billion yuan, is aimed at advanced AI processors, while the remainder will support AI model training and data center expansions, including overseas facilities [7] - ByteDance is considering purchasing 20,000 NVIDIA H200 chips at about $20,000 per unit, which could lead to an increase in capital expenditure if access to more chips is granted [8]

TikTok Deal & Algorithm Control - The core issue revolves around whether Bytedance, TikTok's parent company, will retain control over TikTok's algorithm [3] - Beijing has consistently refused to relinquish control of the algorithm to U S investors [4] - The potential deal may allow Bytedance to maintain control over the algorithm, raising concerns about influence over American discourse [4] - Skepticism exists regarding the possibility of rebuilding or retraining the algorithm independently of Bytedance [5] - Beijing imposed export controls on the algorithm back in 2020, which remain in effect [7] National Security Concerns - Concerns persist that allowing an adversary-controlled company to maintain control of the algorithm poses a risk to U S national security [6] - The situation is likened to allowing a foreign power to control major U S media outlets [8] - The proposed TikTok deal seemingly contradicts the Trump administration's national security strategy, which identifies foreign interference in U S media as a problem [9] US-China Relations & Trade - The situation is influenced by ongoing trade issues between the U S and China, particularly concerning chips [1] - Domestic supply chain resiliency in China is a significant focus [1] - The TikTok situation is described as a saga, with the U S side continually lowering expectations in negotiations with Beijing [4][7]

Deal Structure & Regulatory Landscape - Oracle is the most likely candidate to lead the joint venture [1] - The deal's palatability to both the US and Chinese governments remains uncertain, pending Chinese regulatory approval [2] - The joint venture has the US government's blessing, suggesting a pre-approved proposal [3] Competitive Dynamics - Instagram Reels' run rate has surpassed $50 billion, indicating significant growth and competition with TikTok [5] - YouTube Shorts' engagement share is nearing that of TikTok [6] - TikTok's US revenue is estimated to be between $12 billion and $15 billion [6] - Instagram/Meta's revenue ramp-up is attributed to a better ad stack and personalization, enhanced by generative AI [8] Challenges & Future Prospects - TikTok faces challenges in algorithm and ad personalization, hindering revenue growth [8][9] - Rewriting the algorithm and attracting talent are crucial for the joint venture's success [10][11] - A public offering for the new joint venture is considered premature due to ongoing algorithm changes [9][10] - Silver Lake's involvement is viewed positively, suggesting a potentially good deal [4]

US-China Trade & Technology - The industry is closely monitoring Nvidia's access to China, potential TikTok deal outcomes, and ongoing US-China trade relations [1] - China's focus on domestic supply chain resilience, particularly in the chip sector, is a significant trend [1] - The H200 chip is expected to benefit Chinese AI companies [1] TikTok Deal Analysis - Investors are scrutinizing the structure of the potential TikTok deal [3] - ByteDance, TikTok's parent company, is likely to retain control over TikTok's algorithm, which is considered the app's core asset [3][4] - Beijing has consistently refused to relinquish control of the algorithm [4][6] - The US administration is seemingly lowering its expectations regarding control over the algorithm in the TikTok deal [4] National Security Concerns - Concerns persist regarding national security if ByteDance maintains control over TikTok's algorithm [6][7] - The US Congress initially opposed the deal due to national security risks associated with an adversary-controlled company managing the algorithm [6] - Beijing imposed export controls on the algorithm, which remain in effect [6][7] - The US National Security Strategy highlights foreign interference in US media as a problem, raising questions about the TikTok deal [8]

Core Insights - The ongoing negotiations regarding TikTok's future in the U.S. involve significant complexities, particularly concerning the control of its algorithm by ByteDance, which is critical to the app's functionality and user engagement [3][4][6]. Group 1: TikTok Deal and Algorithm Control - The deal involving TikTok is not yet finalized, and investors are closely analyzing its structure, particularly the control of the algorithm by ByteDance [3][4]. - Beijing has consistently refused to relinquish control of TikTok's algorithm to U.S. investors, which is a central issue in the negotiations [4][6]. - The Trump administration has been lowering expectations regarding the deal, indicating a potential settlement where ByteDance retains control over the algorithm, raising concerns about U.S. national security [4][6][7]. Group 2: National Security Concerns - There are significant national security implications if ByteDance maintains control over TikTok's algorithm, drawing parallels to historical concerns during the Cold War regarding foreign influence in U.S. media [6][7]. - The U.S. Congress passed laws to address national security risks associated with foreign-controlled companies like ByteDance, which underscores the ongoing tension in these negotiations [6][7][8]. - The Trump administration's national security strategy highlights the issue of foreign interference in U.S. media, which contradicts the potential deal with TikTok [8].

Group 1: Oracle's Investment in TikTok - Oracle is set to be part of a group of investors acquiring the U.S. operations of TikTok for approximately $14 billion, partnering with Silver Lake and MGX [1][2] - Each investor, including Oracle, is expected to hold a 15% stake in TikTok, while ByteDance will retain a 20% minority ownership [2] - Oracle will be responsible for data security, U.S. user data hosting, and algorithm oversight to comply with U.S. national security requirements, pending approval from Chinese regulators [2] Group 2: Financial Performance - Oracle reported fiscal Q2 revenue of $16.1 billion, reflecting a 14% year-over-year increase, although it fell short of the $16.21 billion consensus estimate [5] - The cloud business generated nearly $8 billion in revenue, marking a 34% growth compared to the previous year [5] - Earnings per share (EPS) reached $2.26, a significant 54% increase year-over-year, surpassing the expected $1.64 [6] - Remaining performance obligations surged by 438% to $523 billion, indicating strong demand and revenue visibility for Oracle's services [7]

TikTok owner ByteDance’s valuation hits US$500 billion as US survival plan advances ...