The Information AM

Save 25% on an annual subscription to read the most important news about technology and business first. For even more, Save $250 on The Information Pro for unlimited access to our proprietary org charts, databases and surveys.

1.	China Agrees to TikTok Deal With U.S. That Includes Algorithm Licensing By Juro Osawa Source: The Information

A Chinese government official said the U.S. and China have reached consensus on TikTok’s U.S. operations that include licensing of ByteDance’s algorithms and other intellectual property rights.

Wang Jingtao, deputy director of the Cyberspace Administration of China, said the Chinese government “will examine and approve relevant matters involving TikTok, such as the technology export and the license use of intellectual property, in accordance with relevant laws and regulations,” according to the official Xinhua News Agency.  Wang made the comments at a press briefing Monday in Spain, where delegations from the U.S. and China have been holding trade negotiations.

Remarks from Chinese officials followed President Donald Trump’s social media post on Monday where he said “a deal was also reached on a ‘certain’ company that young people in our Country very much wanted to save.”  Trump has repeatedly extended the deadline to enforce the U.S. law that forces a ban or sale of TikTok, and the latest deadline is due on Wednesday.

2.	Google Becomes a $3 Trillion Company by Market Capitalization By Martin Peers Source: The Information

Google’s parent Alphabet became a $3 trillion company on Monday, joining Nvidia, Microsoft and Apple in that category. Shares of Google rose 4.5% to $251, giving the company a market capitalization of $3.04 trillion.

The rally, part of a broader upswing in the market likely spurred by upbeat news on U.S.-China trade talks, means that Google stock has now risen 19% in the past two weeks, since a judge ordered Google to undertake fairly limited changes in response to his 2024 ruling that its search business was a monopoly.

Uncertainty about the potential for a breakup of Google flowing from that case—the government had asked for Google to be forced to spin off its Chrome browser and maybe its Android mobile operating system—had pressured the stock for much of this year. Google shares have also been hurt by the perception of that its search business faced a dire threat from the rise of AI, although search revenues continue to grow.

3.	Elon Musk Buys $1 Billion in Tesla Stock By Theo Wayt Source: The Information

Elon Musk has purchased 2.57 million Tesla shares valued at about $1 billion, the electric automaker said in a regulatory filing on Monday.

Musk’s buying, which is his first significant purchase of Tesla shares since February 2020, brings his total stake in Tesla to about 413 million shares. The purchase increased his stake in Tesla from approximately 12.7% to 12.8%, based on Tesla’s 3.2 billion total shares outstanding. Tesla shares were trading up about 8% early Monday following the news.

The news comes after Tesla’s board of directors earlier in September proposed granting Musk another 423.7 million shares if he meets several ambitious goals over the next decade, including Tesla reaching an $8.5 trillion market capitalization. Tesla will ask investors to approve the pay package in November.

4.	Microsoft Raises Dividend 10% By Aaron Holmes Source: The Information

Microsoft said Monday it will raise its quarterly dividend to 91 cents per share, up from 83 cents, beginning in December. The company previously raised its dividend by 10% a year ago, when it simultaneously announced a $60 billion share buyback. Microsoft’s stock was flat in after hours trading Monday.

The company’s decision to return more cash to shareholders comes as it begins to show a noticeable payoff from its investments in artificial intelligence in recent years. The company invested nearly $90 billion on capital expenditures in the year leading up to June, but has notched growing cloud revenue thanks to increases in server rentals on its Azure cloud by OpenAI and other AI customers.

5.	Trump Says TikTok Deal Reached Between China and U.S. By Martin Peers Source: The Information

The U.S. and China have reached a deal on TikTok, allowing it to continue operating in the U.S., President Donald Trump hinted in a Truth Social post on Monday morning, as trade talks between the two countries progress.

Trump said the meeting “will be concluding shortly. A deal was also reached on a ‘certain’ company that young people in our country very much wanted to save. They will be very happy,” he said in the post.

CNBC also quoted Treasury Secretary Scott Bessent, who is leading the trade talks for the U.S., saying the two countries had reached a “framework” agreement for TikTok.

6.	Cybersecurity Firm Netskope Raises IPO Price Target By Valida Pau and Katie Roof Source: The Information

Cloud security startup Netskope late Monday increased the price range of its planned initial public offering to $17 to $19 per share from $15 to $17, according to two people with direct knowledge of the plans. The range means it could sell as much as $908.2 million in the listing. The increased range hasn’t previously been reported.

The startup, the latest of several to list shares this month, is offering 47.8 million shares in the IPO. It could seek to price above the range at $20 to $21 a share, one of the people said.

At the top of the price range, Netskope would have a market value of about $9.5 billion on a fully diluted basis. Netskope, founded in 2012, develops cloud security software that helps businesses protect websites and data from cybersecurity attacks. It was last valued at $7.5 billion in 2021 and is backed by Lightspeed Venture Partners, Accel and others.

Netskope didn’t immediately respond to a request for comment.