Business
How TikTok Evaded a Ban Again and Again, Until Now
In mid-2023, TikTok had just eluded an effort in Congress to ban the video app, the latest Houdini-like escape for the young tech company. For several years, during both Republican and Democratic administrations, lawmakers and officials had trained their sights on the app, saying its Chinese ownership posed a national security risk.
Inside TikTok, a small group of employees started formulating a plan to ensure that the regulatory threat would never reappear, three people with knowledge of the project said. The employees pitched a campaign of TV commercials, messages to users and other public advocacy to turn Washington’s attention elsewhere. They called it Project Achilles.
But TikTok’s leaders lost interest by the end of the year. Several, including Shou Chew, its chief executive, seemed to think the threat of a ban was no longer imminent, the people said. Project Achilles never became reality.
The misreading of the political winds could not have been greater.
Just a few months later, Congress overwhelmingly passed and President Biden signed a law that would ban TikTok unless the app’s owner, ByteDance, sold it to a non-Chinese company. On Friday, the Supreme Court upheld the law. TikTok is set to be removed from app stores on Sunday, when the law goes into effect.
The ban will end a remarkable eight-year roller-coaster ride for TikTok in the United States. The company wriggled its way out of political danger time and again. The threats to its very existence came so often, from so many directions, dealing with them became almost second nature for executives — perhaps to the point of complacency.
All the while, TikTok reached new heights of popularity and public influence. It boasts 170 million monthly U.S. users, giving the company confidence that those masses could help beat back whatever regulators aimed its way. Behind the scenes, TikTok conducted secretive negotiations with government officials and advertising blitzes aimed at rescuing it.
But in the end, the company ran into a well-organized and focused effort among Washington officials that it could not stop. Its biggest gamble yet was that it could overturn the law and avoid a sale altogether — a bet that failed.
Many social media companies have skyrocketed in popularity only to fade away nearly as fast, and others, like Facebook and X, have faced tough scrutiny in Washington. But none have been effectively forced to erase their presence in the country. Only TikTok will have that distinction.
“The vast majority of people I’ve talked to have said TikTok will figure something out, without a very clear answer to what that something will be, because they always have,” said Joe Marchese, a venture capitalist and former TV network executive. People “can’t picture it not working out.”
TikTok is already appealing directly to President-elect Donald J. Trump, who has vowed to save the app, somehow. Mr. Chew posted a direct appeal to Mr. Trump on TikTok after the Supreme Court decision, thanking him “for his commitment to work with us to find a solution that keeps TikTok available in the United States.” TikTok declined to comment on Project Achilles.
Late Friday, the company said that unless the Biden administration made it clear to service providers that they could continue providing services to the app after the law took effect, “unfortunately TikTok will be forced to go dark on Jan. 19.” But on Saturday, the White House press secretary called TikTok’s statement “a stunt.” And Mr. Trump indicated in an interview with NBC News on Saturday that he would “most likely” give TikTok a 90-day extension once he takes office on Monday.
TikTok users are grieving, often couching their dismay in dark humor. Few seem to believe the app will be blocked on Sunday.
“In 2020 I did an interview about the TikTok ban, and I was saying the same thing: ‘I don’t think it’s going to get banned,’” said Yumna Jawad, a recipe developer and content creator who goes by Feel Good Foodie. “Five years later, I’m still doing the same interview.”
It ‘Can Change Somebody’s Life’
Before it was TikTok, it was Musical.ly, a Chinese lip-syncing app popular with teenagers and tweens.
Musical.ly’s two founders had nearly run out of venture funding for an education app when they decided to pivot to D.I.Y. music videos in 2014. The app let users film over 15-second clips of popular songs, often accompanied by a distinct brand of hand choreography.
As Musical.ly grew, ByteDance took notice. It paid around $1 billion for Musical.ly in 2017 and ultimately folded its technology and users into an app that ByteDance had launched internationally only a few months earlier: TikTok. By 2018, TikTok was roaring into the rankings of the most downloaded apps in the United States.
During the Covid-19 pandemic, TikTok became a mainstay in Americans’ lives. The app, with its endless stream of short-form entertainment, was perfectly positioned for a period when many people had more free time than ever. Or, as the musician Curtis Roach put it in the video that would make him one of the pandemic’s earliest breakout stars, a time when many people were “bored in the house.”
“I joined just to post my little funny videos, and TikTok turned into something that can change somebody’s life,” Mr. Roach said in a recent interview.
TikTok seemingly left no corner of culture untouched.
Emma Straub, an author and owner of the independent Books Are Magic bookstores, recalled seeing backlist titles like Madeline Miller’s “The Song of Achilles” suddenly in high demand after BookTok made them popular again. In the culinary world, TikTok sent feta cheese and, later, cucumbers flying off the shelves as home cooks clamored to recreate viral recipes. Jane Wickline leveraged parody videos into a role on “Saturday Night Live.” TikTok was the most downloaded app in the United States and world in 2020, 2021 and 2022.
Almost overnight, teenagers became household names. By November 2020, Charli D’Amelio had amassed 100 million followers, making her, at that time, the most-followed person on TikTok in the world. She became, at age 16, famous for recording dance videos in her bedroom. By 2021, her family would have a reality show on Hulu.
“It was a vehicle for my kids and us to follow their dreams,” said Marc D’Amelio, Ms. D’Amelio’s father.
Regulatory Reality
As TikTok’s popularity surged, so did scrutiny from the U.S. government. But TikTok managed to evade almost everything officials threw at it.
The first serious effort to ban the app in the United States came in the summer of 2020 from Mr. Trump, during his first term as president. TikTok was already on edge after a ban in India. Then Mr. Trump raised concerns that ByteDance could hand over sensitive TikTok user data to the Chinese government.
“As far as TikTok is concerned, we’re banning them from the United States,” he said in July 2020.
Mr. Trump later hedged, saying he did not mind if Microsoft or another “very, very American” company bought TikTok instead. In August, he issued an executive order that effectively barred app stores from hosting TikTok. It gave companies a 45-day deadline to comply.
TikTok sued to block the executive order. As the deadline approached, the company tried to find a path that would assuage Mr. Trump’s fears by having two American companies take a stake in a new U.S.-based company, TikTok Global, which would go public within a year. But at the 11th hour, the deal appeared to be imperiled by the Chinese government and conflicts over ByteDance’s involvement.
Suddenly the ban seemed imminent — and yet TikTok emerged unscathed.
That fall, two federal courts agreed with TikTok that the executive order was unlawful and stopped the ban from going into effect. Shortly afterward, Mr. Trump lost his bid for re-election, complicating policymakers’ approach to addressing the concerns they had about TikTok and shelving the contentious deal.
TikTok wasn’t out of the woods. The Biden administration had many of the same national security concerns about the app. And some states began acting on their own against it.
By early 2023, more than a dozen states had blocked the app from government-owned devices and networks, joining previous bans by the Army and the Air Force. That April, Montana passed a law to block the app outright in the state to protect its citizens’ data from China. TikTok sued, saying the law was overreaching and violated the First Amendment.
Congress had also started discussing a ban in earnest — conversations that multiplied after lawmakers grilled Mr. Chew, TikTok’s chief executive, in a five-hour hearing in March 2023. TikTok had also been working for years on a proposal to show it could operate independently from China, but that same month, the Biden administration started to seem increasingly skeptical of it in public.
That fall, Republican lawmakers began accusing TikTok of amplifying pro-Palestinian and anti-Israel videos and a decades-old letter by Osama bin Laden through its algorithmic feed.
Yet by the end of 2023, TikTok had escaped defeat again. A huge lobbying campaign that included flying TikTok stars to Washington helped fend off the proposal that Congress had been discussing.
The company’s legal case against the Montana law prevailed, too. That November, a federal court ruled that TikTok wouldn’t have to go dark in that state after all.
By December 2023, more than 150 million people were using TikTok in the United States.
‘Lower the Temperature’
With both the congressional effort and Montana’s ban behind them, some of TikTok’s top leaders seemed to believe the worst of the threats had passed.
Mr. Chew agreed to a rare profile in Vogue Singapore. Michael Beckerman, TikTok’s head of policy for the Americas, and Zenia Mucha, who oversees TikTok’s marketing and communications, were among executives who flew to Singapore, where Mr. Chew was based, and downplayed the near-term risk of a ban to company leaders, two people familiar with the trip said. After all, President Biden had just joined the app around the 2024 Super Bowl.
Ms. Mucha reflected that the company needed to “lower the temperature” and keep TikTok out of the news, according to four employees who heard her use the phrase when dismissing efforts, like Project Achilles, to prepare for a ban.
What ByteDance and TikTok didn’t realize — despite their well-paid policy staff and millions in lobbying expenditures — was that a small bipartisan group of lawmakers was secretly working on drafting a new law designed to withstand every legal challenge that TikTok had raised in the past. It was formally introduced last March.
TikTok was blindsided. It scrambled to respond, flying creators to Washington and sending pop-up messages to users, urging them to call their representatives to oppose the legislation.
But this time, its campaign failed. Congress passed the bill rapidly, with rare bipartisan support, and Mr. Biden signed it into law in April, less than eight weeks after its introduction — leading some aides to nickname it “Thunder Run.” Unlike Mr. Trump’s executive action, the law was upheld in the courts.
A Last Hope
Despite TikTok’s looming ban, it was largely business as usual inside the company.
Two weeks after Mr. Biden signed the TikTok law, Mr. Chew and his wife joined dozens of celebrity guests at the 2024 Met Gala in Manhattan, which TikTok sponsored. The company told advertisers like L’Oreal and Victoria’s Secret that it wasn’t backing down from its U.S. business over drinks in New York and on the French Riviera at the ad industry’s annual confab in Cannes. It said it would sponsor the Washington Capitals hockey team in September.
TikTok executives have, at times, made light of the possible ban, suggesting in one staff meeting over the summer that it would one day be the subject of a Hollywood film.
In October, Mr. Beckerman held a gathering for his team in Lima, Peru, flying dozens of employees there, three people with knowledge of the outing said. The team outings were typically a mix of business and fun — but the jaunt struck some as surprising given the company’s situation. (TikTok said a hurricane had forced it to switch from an original destination of Miami.)
Now, TikTok is pinning its last hope on Mr. Trump.
Mr. Trump, who now has 14.8 million followers on his TikTok account, publicly changed his stance on the app last March. He has vowed to save it, though his options, even as president, are limited. He cannot overturn the law on his own, and it is not clear how he might stop its enforcement. He could try to exercise a one-time 90-day extension for TikTok if he determines sale talks are underway that would meet the terms of the law.
TikTok does not seem to be giving up. The company is spending thousands to be the headline sponsor of an event on Sunday, the day the law is scheduled to go into effect, celebrating the conservative influencers who helped shape the 2024 election. On Monday, Mr. Chew will attend the inauguration, alongside former presidents, family members and other important guests.
TikTok’s stars do not seem to believe this is the final blow, either. Bethenny Frankel, the Bravo star and entrepreneur, said she had a hard time believing that TikTok could be gone on Sunday. TikTok’s users will figure out a way forward, she said.
“They’re club kids, and they’re going to figure out where the after-party is,” Ms. Frankel said. “They’re not letting the club get shut down.”
Business
Struggling Six Flags names new CEO. What does that mean for Knott’s and Magic Mountain?
Struggling with a plummeting stock price and a decline in revenues, Six Flags Entertainment Corp. named a new CEO Monday, weeks after company officials suggested they would sell more underperforming theme parks.
Six Flags announced John Reilly, a veteran theme park operator, as its new president and CEO. He had served as an interim CEO and chief operating officer at SeaWorld Parks and Entertainment in the past.
Reilly is taking the reins of the struggling Charlotte, N.C.-based company that operates Knott’s Berry Farm in Buena Park and Six Flags Magic Mountain in Valencia.
“He’s got his work cut out for him,” said Martin Lewison, associate professor of business management for Farmingdale State College in New York, who is also a Six Flags shareholder.
Since its merger with Cedar Fair Entertainment Company last year, Six Flags has upset some parkgoers with its cost-cutting efforts, including moving to a regional management model where park presidents at Knott’s Berry Farm and Magic Mountain were laid off. At some parks, live entertainment was reduced or mostly canceled, and some seasonal events did not return this year, such as WinterFest and Tricks and Treats at California’s Great America in Santa Clara.
Lewison said his own experience has been spotty at Six Flags parks, and two issues the company will need to address are how it wants to brand itself, and whether it wants its theme parks to be family-oriented or thrill-oriented.
“The company is just sort of a mishmash of a brand right now,” Lewison said.
While the holidays can be a big driver of traffic to Southern California theme parks like Disneyland, Six Flags’ regional parks have experienced some challenges, Lewison said.
At Six Flags, revenues and earnings were down in the third quarter compared to the same period last year, and there were fewer visitors in October compared to the same month in 2024. Executives earlier this month suggested they’re taking a stronger look at closing and selling off more of its underperforming theme parks.
In an earnings call earlier this month, Brian Witherow, chief financial officer for Six Flags, said certain parks that represent 70% of the company’s earnings are outperforming, while its other parks are struggling.
Witherow said the company had invested more money in maintenance to improve the guest experience at the underperforming parks, “but did not yet achieve the commensurate uplift in profits we were targeting.”
In a pair of examples, Witherow cited a “historically well-maintained” theme park “with a loyal customer base,” where the company was able to “minimize costs without impacting consumer demand or the guest experience,” and earnings grew 14%. Then, he cited an underperforming park, where, despite significant spending to address deferred investment needs, earnings fell significantly.
“Going forward, we intend to be more nimble and strategic in allocating investment dollars, focusing only on our highest potential underperforming parks and the strongest opportunities to deliver near-term returns,” Witherow said. He declined to list which parks were underperforming.
Witherow said it’s a priority for Six Flags to narrow its focus “and shrink our capital needs.”
“We’re going to look at the parks where our returns are the greatest, where the opportunities for growth are the highest, and we’re going to focus on those parks. The other parks we’ll look to monetize and use those proceeds to reduce debt,” Witherow said.
In the third quarter, Six Flags’ underperforming parks saw attendance decline 5%, Witherow said.
The company this month permanently shuttered its Six Flags America theme park and Hurricane Harbor water park in Bowie, Md., and will put up the land for sale. In Northern California, California’s Great America is set to close in the coming years, with its final season either in 2027 or in 2032, depending on whether the company exercises an option to extend its lease by an additional five years.
Could Six Flags be considering selling either of its parks in Southern California? Not at this time, Witherow suggested.
Some of Six Flags’ parks that have high property values are in Southern California, as well as Toronto, but those are parks that “are critical to the long-term growth of the business,” Witherow said. A sale of those properties, “I think from that perspective, would not be something, at least where we sit today, that we would be interested in pursuing.”
Reilly succeeds Richard A. Zimmerman, who announced his plans in August to step down as Six Flags’ president and CEO and will leave the board on Dec. 8.
Reilly will join the company at a time when it is facing pressure from activist investors like New York-based Jana Partners to improve its operations. Last month, NFL football player Travis Kelce joined an investment coalition — which includes Jana Partners — that owns about 9% of Six Flags.
Jana has said it plans to engage with Six Flags’ board and management team to improve the company’s marketing strategy and operations, accelerate technology modernization, assess its leadership and evaluate potential acquisitions.
Zimmerman, in the earnings call, said the company has an “ongoing constructive engagement” with the investment group led by Jana Partners, which includes Kelce. He said following the announcement of the group’s interest in Six Flags, there was a surge of consumer interest, a reaction that “reinforces our confidence that Six Flags is as exciting and relevant as ever.”
“Travis Kelce, influencers of that ilk, have tremendous followings,” Zimmerman said. “Travis Kelce is somebody that’s come to our parks in many of our locations and has an affinity for them. We are going to work very closely with him and his team to make sure that we optimize that opportunity.”
For the third quarter, net revenues were $1.32 billion, down $31 million, or 2% compared with the third quarter of 2024. Adjusted earnings before interest, taxes, depreciation and amortization was $555 million, down by $3 million.
That came despite attendance totaling 21.1 million guests, up 1%. One warning sign was a decline in how much guests were spending inside the theme parks, with more season pass holders visiting but fewer single-day visitors.
There were more warning signs in October. For the five-week period that ended Nov. 2, there were 5.8 million guests, down 11% compared to the same five-week period last year.
Six Flags shares closed Monday at $14.44, up 7%. Its 52-week high was $49.77.
Business
Giant landlord settles with California for colluding on rents in L.A. and elsewhere
Greystar, which manages dozens of apartment complexes in Southern California, has settled a lawsuit that alleges the property giant and other landlords colluded to keep rents artificially high.
The national apartment landlord and manager was a defendant in an ongoing suit filed last year by the U.S. Department of Justice that focuses on software from RealPage that is used by many apartment operators to set rent prices for vacant units and renewal rates for existing tenants.
The lawsuit alleges Greystar and other landlords were illegally using RealPage to share proprietary data so they could align their prices and drive up rents.
Last week, Greystar agreed to stop using software offered by any company, including RealPage, that uses competitively sensitive information to align rent prices, California Atty. Gen. Rob Bonta said. Greystar also agreed to cooperate in the ongoing prosecution of RealPage and other defendant landlords.
“Whether it’s through smoke-filled backroom deals or through an algorithm on your computer screen, colluding to drive up prices is illegal,” Bonta said.
Greystar, which is based in Charleston, S.C., manages about 333 multifamily rental properties in California that use RealPage’s pricing software, the attorney general said.
The company has agreed to pay $7 million in penalties and fees to nine states, including California.
“We are pleased this matter is resolved and remain focused on serving our residents and clients.” Greystar spokesman Garrett Derderian said.
In a competitive market, authorities said, property owners would be forced to compete with each other, helping to drive down rental costs for Americans. But RealPage was used to avoid some of that competition, the lawsuit said.
The suit said competing landlords shared nonpublic information — such as occupancy and rents on executed leases — with RealPage, which then used that data to recommend rents at individual properties.
The company previously called similar allegations false and misleading, saying clients can decline its recommendations, which at times includes suggestions to drop rental rates.
But in its complaint, the Justice Department pointed to instances where RealPage described its software as a tool for maximizing rent and outperforming the market. Authorities also alleged the company made it more difficult for landlords to reject its recommendations than accept them.
“There is greater good in everybody succeeding versus essentially trying to compete against one another in a way that actually keeps the entire industry down,” a RealPage executive said, according to the lawsuit.
At another point, RealPage described its tools as ensuring landlords are “driving every possible opportunity to increase price even in the most downward trending or unexpected conditions,” the complaint says.
Without competitive pressure, landlords have no incentive to decrease prices or offer discounts common in rental markets, like a free month or waived fees, the attorney general said.
The settlement is a “big deal” for renters, said K Agbebiyi of the nonprofit Private Equity Stakeholder Project.
“Greystar is essentially not allowed to use the rental price setting component of RealPage,” they said. “That places doubt about the long-term stability of RealPage, when the largest landlord in the country is banned from using them.”
Greystar manages nearly 1 million apartments in the U.S., according to real estate data provider CoStar. It is one of the country’s largest apartment managers.
Other large apartment managers named in the suit include Camden, Cushman & Wakefield/Pinnacle, LivCor and Willow Bridge.
Times staff writer Andrew Khouri contributed to this report
Business
‘Wicked: For Good’ flies to the top of the box office with $150-million domestic debut
Elphaba and Glinda have changed the box office, at least for this weekend.
“Wicked: For Good” — the conclusion to Universal Pictures’ two-part film franchise — hauled in an estimated $150 million in the U.S. and Canada this weekend, marking the second-highest domestic opening this year, trailing only blockbuster hit “A Minecraft Movie.” Globally, the film grossed about $226 million.
The opening weekend audience for “Wicked: For Good” skewed even more female (69%) than the first film, which counted 61% of its viewers as women, according to data from EntTelligence.
Lionsgate’s “Now You See Me: Now You Don’t” came in a distant second at the domestic box office with $9.1 million. The third installment of the illusionist franchise has now brought in a cumulative $36.8 million in the U.S. and Canada and a total of $146.2 million globally across its two weekends.
Disney’s 20th Century Studios’ “Predator: Badlands,” Paramount Pictures’ “The Running Man” and “Rental Family” from Searchlight Pictures rounded out this weekend’s top five.
The Cynthia Erivo and Ariana Grande-led film was bolstered by a massive marketing push that began early last year before the first “Wicked” movie debuted. Though the films are based on the hit Broadway play, Universal wanted to expand awareness of the story to markets that had been less exposed to the theatrical show.
As a result, the franchise has partnered with more than 100 brands, including toy companies like Lego and Mattel as well as more unexpected firms such as household goods giant P&G and online Asian supermarket Weee!, where director Jon M. Chu serves as chief creative officer.
The film’s opening weekend success also points to a demand for female-focused franchises.
After 2023’s “Barbie” grossed $1.4 billion at the global box office, there were countless calls for more films geared toward women. But this year, many of the big-budget movies were male-leaning, and the narrower returns at the box office have prompted questions about whether films were reaching all possible demographics.
“Women continue to be a really underserved audience,” said Shawn Robbins, director of movie analytics at Fandango and founder of the website Box Office Theory. “In terms of large blockbusters, it’s been a minute since there’s been a female-skewing movie on the scale of ‘Wicked’ or ‘Lilo & Stitch.’”
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