← Morning Brew Daily
Morning Brew Daily
$100K H1-B Visa Fee Upends Tech Sector & Murdochs Involved in TikTok Deal?
00:26:52
New visa fee has tech scramblin’ & Media moguls owning TikTok?
Loading summary
Transcript62 lines
- [00:01]
Toby Howell
This annual enrollment season is your chance.
- [00:03]
Neal Freyman
To pair a health savings account, HSA for short, with an HSA eligible health plan.
- [00:07]
Toby Howell
Together they can help you put out.
- [00:09]
Neal Freyman
Of pocket money back in your pocket.
- [00:11]
Toby Howell
When you open an hsa, your money.
- [00:12]
Neal Freyman
Goes in tax free.
- [00:13]
Toby Howell
You can spend it now and save on qualified medical expenses or invest it where it could grow tax free and your money's yours forever.
- [00:20]
Neal Freyman
So while you're listening, tap the banner or find out more@fidelity.com HSA sponsored by Fidelity Investments. Good Morning Brew Daily Show. I'm Neal Freyman.
- [00:34]
Toby Howell
And I'm Toby Howell.
- [00:35]
Neal Freyman
Today tech companies are in panic mode after the White House slapped a huge fee on worker visas.
- [00:40]
Toby Howell
Then stop me if you've heard this one before. The US China tick tock deal is close to being finalized. It's Monday, September 22nd. Let's ride.
- [00:54]
Neal Freyman
Good morning and welcome back to the week. Did you know that Harry Styles ran the Berlin Marathon in less than 33 hours yesterday? Okay, now that I have your attention, I want to remind you that Morning Brew Daily is hosting a live holiday show in early December and pre sale tickets are available. Now. We'll send off 2025 in style by reliving the year in business news, playing some pre show games, and if I get my way, dying Toby's hair blonde. We already started planning the show and the lineup is looking more stacked than Coachella. Toby, what are the details?
- [01:25]
Toby Howell
The details are this is going to be the greatest live variety show the business news world has ever seen. What? Hosting it at the Bell House in Brooklyn. A fantastic venue. And right now we are still in that special presale period, which means you need to enter a special presale code to get your tickets. And that code is. Let's ride. Super excited for this. Going to be the highest concentration of MBD listeners ever assembled in one room. So head to the link in the show description. Enter code. Let's ride. Get your tickets today and figure out if hair and makeup exists.
- [01:57]
Neal Freyman
And now a word from our sponsor. Remarkable Toby, do you ever feel less present because of technology?
- [02:03]
Toby Howell
What was that?
- [02:04]
Neal Freyman
Perfect answer to my question, actually. See, if you were using the remarkable Paper Pro move, you wouldn't shut out the world or your co host.
- [02:11]
Toby Howell
I don't need technology. Nor are you, buddy. You're right though. The remarkable Paper Pro move is a paper tablet that really breaks down the wall created by laptops during a meeting. Plus it fits right in my pocket. So you can really take it anywhere. Way better than an old coffee stained dog eared notebook.
- [02:27]
Neal Freyman
Yes, it's way better than your gross notebooks, but still has the feel of writing in a notebook like a true writer.
- [02:33]
Toby Howell
It's even got two weeks of battery life so you don't spend every few hours having to charge it.
- [02:38]
Neal Freyman
You can try Remarkable Paper Pro move for 100 days for free. If it's not what you're looking for, get your money back. Get your paper tablet@remarkable.com today. That's remarkable.com if tech executives and their lawyers had any weekend plans, they were abruptly canceled after a new visa rule for the Trump administration sowed chaos across the sector. On Friday, the president signed an executive order adding a new $100,000 fee for H1B visas, which are granted to high skilled foreign workers and utilized heavily by the American tech sector. With the rule going into effect Sunday right after midnight, tech companies sprung into action to make sure their H1B employees wouldn't be stranded overseas. Companies including Amazon, JP Morgan, Alphabet, Microsoft, Goldman Sachs and Walmart all advise their H1B holders to either stay in the United States or get butts back by 12:01am Eastern on Sunday. One software engineer told the BBC he spent $8,000 on plane tickets to get back to the US from India, where he had been attending a family wedding. On Saturday, Trump officials tried to smooth things over by clarifying that the $100,000 fee would only be applied to new visa applications and wouldn't affect existing holders, which is not what was suggested in the announcement on Friday. So things still remain very much in flux for companies and immigration lawyers who are burning the midnight oil trying to figure out what this one attorney told the New York Times. There's a lot of question marks all over this. We're still flying in somewhat foggy conditions. So this represents the Trump administration's largest overhaul of legal immigration and will have huge consequences for the economy. What is the reasoning behind it?
- [04:15]
Toby Howell
Trump has long been at odds with the H1B program because he wants to ensure that Americans are the first in line for these high paying, scarce tech jobs. Although economists argue that these programs that allow these workers to come to the U.S. allow businesses to maintain their competitiveness. And if you're a competitive business, what are you doing? You're growing, which leads to more job creation. But again, Trump has been beating this drum since all the way back in his 2016 campaign, saying that the H1B program deprioritizes American workers. So this is his latest attempt to rewrite the calculus and make it much more difficult for companies to sponsor these foreign workers because you just raised the price tag exponentially.
- [04:55]
Neal Freyman
So which companies actually use the H1B program? Amazon employed the most H1B holders last year, more than 14,000 at the end of June. And then Microsoft, Metta, Apple and Google each had over 4,000 visas each. They are among the top 10 recipients for the fiscal year 2025. So here's how it works is basically there's 85,000 possible visas that are awarded each year and companies enter this lottery to apply for them. And over 400,000 of these requests are made. There's such in high demand. And that's because some of the top executives of the top corporate leaders in the United States have come to the United states through the H1B program. Eric Yuan, Zoom founder Sundar Pgi, the Alphabet CEO Satya Nadella, Microsoft CEO Indra New Year, the former Pepsi CEO and Sanjay Mehrotra, the Micron CEO all came to the United States through the H1B program. And proponents of it say, well, this is how we bring in talent to the United States. This is how we maintain our competitiveness on the global scale. And if we're in that locked in this fight with China for AI and this is the global technology race of our times and we're just kneecapping ourselves by not by sort of making it almost impossible for companies to pay up for this.
- [06:09]
Toby Howell
And then speaking of kneecapping in the domestic world, it's not just our competition with China that you have to think about, it's competition within the United States. Who is this going to favor if these visas are so expensive to sponsor? It's going to favor Big Tech. It is much more difficult for a startup who maybe just raised a seed round to pay $100,000 to get a high skilled workers. It is much easier for Amazon, for Apple. They have plenty of cash so they can continue to attract these workers and pay for them. So it might tilt the playing field even further in the favor of Big Tech when it comes to competing with smaller startups.
- [06:46]
Neal Freyman
And right now it costs $215 to register for an H1B visa lottery and then an additional $780 for employee to it for an employ sponsored visa applicants estimates right now suggest that this new $100,000 fee should companies pay it will saddle them totally with $14 billion in extra costs. There's a question of whether this will just scuttle the program entirely because paying $100,000 for just a single worker just may not be feasible. Not not only for startups, certainly for startups, but Also, even for the biggest.
- [07:19]
Toby Howell
Companies, last week, when the White House announced a deal for a US investor group to take over TikTok's algorithm, details were few and far. President Trump revealed a who's who of tech media giants are lining up ad club TikTok to be involved, including Oracle co founder Larry Ellison, Dell founder Michael Dell, and Fox News owners Lachlan and Rupert Murdoch. Previously, the Wall Street Journal had reported that the Tick Tock consortium would also include the PE firm Silverlake and the VC firm Andreessen Horowitz. Still, as Axios points out, what's still entirely unclear is exactly who's involved in what capacity, what price they will pay, who will lead the new entity, or when any deal will actually happen. The general premise behind this deal is that TikTok will move its US users to a new app with its own content recommendation system designed by the company's engineers. ByteDance, TikTok's parent company, would retain under 20% ownership of the new company, while the remainder would be held by the US Investors and overseen by a majority American board. The final aspect of this convoluted deal is that the Trump administration is likely to reap a multibillion dollar fee in exchange for negotiating the agreement with China, as it once again dabbles in playing a private sector kingmaker. Neil the TikTok saga has felt like it's taking longer to put together than a midnight Doom scroll session, but it looks like it's in the home stretch.
- [08:41]
Neal Freyman
Yeah, Harry Styles ran a marathon faster than than how long this deal is taking place. Caroline Levitt, the White House spokesperson on Saturday said, We are 100% confident that a deal is done now. That deal just needs to be signed and the president's team is working with their Chinese counterparts to do just that. She added that six of the seven board members of the new US App will be will be Americans. The algorithm will also be controlled by America. The way they're going to do this, it looks like, is they're going to spin out a new US Entity or a new US Tik Tok app. Whether that means you have to Download a new TikTok app remains to be seen. 50% of this new company will be run by new investors like Oracle and Andreessen Horowitz, and perhaps more names that we don't quite know yet. 30% will be existing ByteDance investors, and then 20% will be ByteDance, that Chinese company. And that's according to this law that went into effect in January 2025, passed in bipartisan fashion In Congress that requires any. That requires TikTok for it to be operating in the United States to have Chinese ownership of less than 20%.
- [09:48]
Toby Howell
I think the fascinating part of this deal, though, is the fact that the Trump administration is taking this fee from putting it together. Typically, investment bankers receive a fee of, you know, under 1% of a deal's total value. This is now the Trump administration saying, we've basically acted like investment bankers in this regard. Where is our fee? And it's just a pattern we've seen. Now, we've already seen Trump cut deals with Nvidia and Intel, and it takes 15% of Nvidia's AI chip sales in China exchange for giving them those export license. It just bought a 10% stake in Intel. This has been a massive theme of the entire administration thus far, of it dabbling in the private sector, playing, you know, state capitalism, as we like to call it. So fascinating that this is once again, as this deal has come together, like we want some sugar on top of it because we played a role in instrumenting it, even though Congress is one that passed the deal in the first place.
- [10:39]
Neal Freyman
And what's fascinating is why China is selling, quote, unquote, TikTok to the United States now, because for years they've held off and they've been very hard in negotiations, saying, we're not going to give you tik tok, but perhaps like a poker player and you play poker like you can lose a small pot in order to win a bigger one later. And China just has some much bigger fish to fry than TikTok in their minds. I'm talking tariffs, technology, AI and Taiwan. These are all things that matter maybe a little bit more to them than having TikTok under Chinese ownership. This algorithm that is vaunted is maybe a little bit old now. It's getting a little rusty. It was five years ago that this thing really came onto the scene. They're willing to part with it in order to score much bigger wins later. And what they really want is a meeting with Trump. They want Trump to come to Beijing for that big state ceremony where, you know, they can really project power on the global stage.
- [11:30]
Toby Howell
Yeah, Trump thinks that he's squaring the circle here. He is One, punishing China. Two, he's trying to enrich US investors. And he's also trying to, you know, keep TikTok alive to secure that youth vote that he has been after for so long.
- [11:43]
Neal Freyman
Welcome to Winners of the Weekend, the segment where Toby and I pick two things that are in better shape than Harry Styles. I won the pre show One Direction trivia so I get to go first. And my winner is Hamburger Helper because when the going gets tough, the tough by mid century One Pot Meals sales of Hamburger Helper, which contains pasta and seasoning to combine with ground beef, are up 14.5% through August of this year, according to the brand's owner, Eagle Foods. It's further evidence that Americans are looking to eat on the cheap as inflation continues to stay up, elevated and the job market slows down. Other foods you'd associate with the zombie apocalypse are also getting a boost. Rice purchases have increased 7.5% this year, while sales of tuna, salmon, sardines, beans and box Mac and cheese are all strong, the New York Times reported. So Toby, add the Hamburger Helper economy to the list of alternative recession indicators you've been keeping alongside lipstick and Lady Gaga on the radio. Demand for Hamburger Helper also spiked in 2008 during the financial crisis and in 2020 when the COVID Pand Bad news for the economy is great news for highly processed boxed meal kits.
- [12:51]
Toby Howell
There's almost two trends colliding here at the same time. One, obviously inflation pressures and rising beef prices do make Hamburger Helper a more appealing food option. But at the same time, we are in this healthier eating movement right now and Hamburger Helper is a very processed food. One box alone has 27% of your daily sodium in a single serving. So. So I am curious to see if which one of these is going to win out. I would assume it is just the fact that it is getting really expensive to buy food right now. So we are seeing sales increase. You don't necessarily think about how healthy a food is if you're just trying to make ends meet. But it is fascinating to see it come to. It's almost fighting upstream right now against every other thing we've been seeing in the food industry right now. Just because it is bang for your buck. It's always historically represented bang for your buck.
- [13:42]
Neal Freyman
It's $2. Yeah. So it does. It does remind you of the 1970s and 1971. That's when General Mills released Hamburger Helper in five flavors including beef noodle, rice, oriental and chili tomato. It was a massive hit. A quarter of U.S. households purchased a box in its first year, according to General Mills. It expanded since it has 50 flavors. It switched ownership a few times. Now this Cleveland based company, Eagle Foods, bought it in 2022, said it was being neglected a little bit and it made some changes to increase sales and demand A little bit more. It made it faster. So previously it took 30 to 45 minutes to make. Now they want. Now they're saying consumers want to eat really quickly. So they try to make it in 20 minutes by reducing the amount of water and cooking time. And then they added some different recipes and flavors to jive with the American consumer now, which is that we want spicy things. So they introduced this new flavor called Spicy Jalapeno cheeseburger, among others, to just adapt to changing tastes. And it's really paying off right now.
- [14:45]
Toby Howell
Well, I think what's funny about making it faster is they didn't actually change the formulation that much. They figured out that people in the past were cooking their pasta way too much, cooking it to mushy level. But now consumers have realized that al dente is where it's at. So they didn't necessarily have to reformulate a lot. They just say, listen, people, you don't need to leave it in there for 40 minutes. You can leave it in there for only 20 minutes. And then the final thing that kind of gave it some tailwind without them even trying is that there was a big cameo in the bear in the recent seasons, which kind of created this viral wave of interest in a. In a product that people haven't necessarily been thinking about that much. So it's got a little bit of nostalgia, it's got a little bit of a modern push from a modern TV show. And I'm a little hungry. I've never tried Hamburger Helper once in my life. So maybe this is a sign. Let's take a quick break and come back with my winner of the weekend.
- [15:42]
Neal Freyman
If you've done any online shopping before, odds are you bought from a business powered by Shopify.
- [15:48]
Toby Howell
Wondering how you can tell? Close your eyes and picture that purple shop pay button you see at checkout. It's the one that makes buying so incredibly easy.
- [15:56]
Neal Freyman
And it's also the telltale sign that you're buying from a Shopify business.
- [16:00]
Toby Howell
If it's not ringing a bell now, you're bound to start noticing this purple button everywhere. And for good reason. Shopify makes it incredibly easy to start and run your business. So it's no wonder so many businesses sell with them.
- [16:12]
Neal Freyman
Get your very own purple button by signing up for your $1 per month trial and start selling today@shopify.com Morning Brew. That's shopify.com Morning Brew. One of the hardest parts about B2B marketing is reaching the right audience.
- [16:28]
Toby Howell
I remember when I bought a coffee maker, and then months later, kept getting served ads for a coffee maker after I'd already cozied up to my new one.
- [16:36]
Neal Freyman
Don't send your marketing materials into the ether where they might end up in front of the wrong audience or an audience who already has a coffee maker. When you want to reach the right professionals, use LinkedIn ads.
- [16:46]
Toby Howell
LinkedIn has grown to a network of over 1 billion professionals. You can target your buyers by job title, industry, company role, company revenue. You get the picture?
- [16:55]
Neal Freyman
LinkedIn will even give you an extra $250 credit on your next campaign so you can try it for yourself. Just go to LinkedIn.com/me to learn more. That's LinkedIn.com/mbd. Terms and conditions apply only on LinkedIn ads.
- [17:10]
Toby Howell
My winner of the weekend is the silliest of serious scientific award shows, the annual IG Nobel Prizes. The prestigious ceremony honors the achievements that first make people laugh and then make them think. According to the website of the Nobel Prize parody show this year, some of the winners of the competition included Japanese researchers who found that painting zebra stripes on cows actually cut down on painful fly bites. Over in Italy, some physicists cracked the code to making cacio e pepe without turning it into a clumpy mess. You need a precise starch ratio. In West Africa, rainbow lizards were found to have a sense of taste after they kept opting for one type of pizza over another. And in perhaps the strangest diet proposal yet, some scientists suggested adding powdered Teflon, yes, the non stick coating from frying pans to some meals as a zero calorie filler to make them feel more satiating. Neil, as always, this is an award show that highlights the kind of work that makes you laugh first, then pause to wonder if maybe, just maybe, they're on to something. Any scientific breakthroughs blow you away this year?
- [18:15]
Neal Freyman
Well, one that I thought was interesting is that these German researchers look to see whether being drunk or at least having some alcohol made you a better speaker of a foreign language. I don't know if anybody has traveled here. They go to a bar, they're being a little insecure about talking in the language because maybe they spoke, maybe they Learned Spanish in 8th grade and stopped. And then you have a few drinks in you and then all of a sudden it's flowing out. You know, you got your biblioteca is going. So they actually did an experiment. They recruited 50 native German speaking undergrads and then had them speak Dutch with fluent Dutch speakers and gave half, you know, a few alcoholic drinks and half not. And they did find that the half that did have a drink or two spoke better Dutch. So there you go, there you have it.
- [19:02]
Toby Howell
If you've ever wanted to learn Dutch on Duolingo, just have a little bit of a drink first. Also, that wasn't the only drinking related one. Researchers also studied how ethanol affects fruit bats flying in echolocation, and they did find that if you got a little drunk as a bat, they flew slower and echolocated less effectively. So alcohol consumption animals does increase accident risk, much like it does in humans as well. I do want to shout out this Japanese research team though, who found that painting stripes on beef cows made them less prone to getting bitten by flies. They were so excited. They said, when I did this experiment, I hope that I would win the IG Noble. It's my dream. So they actually were, you know, trying to set up to win this award. And then they came on stage, they were dressed in stripes and one fellow researcher was harassing him with cardboard flies. So they really, you know, leaned into the bit which is the whole point of these silly awards.
- [19:57]
Neal Freyman
This ceremony is all camp and it's so great. There's a few, there's a few unique things that they do. During this ceremony is one called 247 lectures, where experts of these scientists have to explain their work twice, once in 24 seconds and the second in just seven words. There's also a miniature opera about gastroenterologists and their patients. I would love to hear that. And then the final thing, Nate Bargazzi, you really have to take notes because this is how you get people to stop rambling when they accept an award. After a minute goes by and you accept your award, a man wearing a dress over his suit appears right next to the person speaking and just yells, please stop. I'm bored. Which is what some, maybe some people do after this podcast. So we love the IG Nobel Prize. We'll can't wait for next year. And it's just a great way to bring, you know, science to the popular imagination. It's Monday, so here's what you need to know to stay ahead in the week ahead. Hundreds of world leaders and diplomats will go through customs at JFK as they descend on New York City for the United Nations General Assembly. This UNGA will mark 80 years since the UN's creation and be dominated by issues such as Palestinian statehood, the war in Ukraine, and the war in Sudan. President Trump will address the UN gathering on Tuesday, while plenty of important meetings between heads of state will take place in the background.
- [21:15]
Toby Howell
It's Always fascinating. You see one set of headlines saying how important these global issues are to being discussed. And it is. There's a lot of very important things being discussed. And then there's always one article usually from the New York Times saying worst week for traffic in the New York City because everything gets so congested with the security forces at play. So they recommend trying to find non driving modes for getting around midtown over the next few days. So if you catch me running around out there, that's just because I'm trying to do non driving modes of transportation.
- [21:45]
Neal Freyman
Golf fans are counting down the days until Friday when the Ryder cup tees off. This competition, held once every two years, pits the best American golfers against the best European golfers and gets about as heated and rowdy as professional golf can muster. This year's Ryder cup is being held just 35 miles from Manhattan at the brutally hard Beth Page Blackhorse in Long Island. So we think Team USA can pull it off.
- [22:08]
Toby Howell
I am so excited. Absolutely. Our boys can pull it off. Neil, you're going. I am not in a stinks because I've played Beth Page, so I know my way around the place. I could have helped Scotty with a couple of reads here and there, but please heckle Rory.
- [22:22]
Neal Freyman
You would have been insufferable anyway, so I'm glad you're not going. Okay. Nature's most popular reality show kicks off tomorrow at the beginning the of of Fat Bear Week. Now in its 11th year, Fat Bear Week is a bigger deal than ever as more than 1 million people from 100 countries cast their vote on the fattest bear at Katmai national park and Preserve in Alaska. Toby, these guys are bigger than Jordan Davis. Past champion 747, aka Bear Force One is estimated to weigh 1400 pounds. That is a lot of salmon he's guzzling down ahead of hibernation and the.
- [22:56]
Toby Howell
Chicago Bears one yesterday. Everything coming up for bears right now. These bears, I saw someone write a story about how they're peak celebrities. They're very captivating but totally oblivious at the same time. Bear cramps are streaming their lives to the world, but all they know is salmon and sleep. That is exactly how you want to be famous. You're so famous that you don't even know you're famous. You are oblivious just living your life. And yet you have these millions of legions of fans.
- [23:21]
Neal Freyman
And apparently the salmon run has been plentiful this year because Fat Bear week usually starts in early October, but today is September 22nd, so they moved it up because these bears are already just so fat. Already a few more tidbits. Your movie snob friend already has tickets to Friday's release of One Battle After Another, the latest film from acclaimed director Paul Thomas Anderson or pta, who did Boogie Nights and There Will Be Blood. This movie stars Leonardo DiCaprio and Sean Penn and is being called an American masterpiece.
- [23:51]
Toby Howell
So when I googled this movie because I had seen some rumblings about it, I got the headline dicaprio Channels Lebowski for One Batt Battle after another from the Boston Herald and say no more, I'm in. And then the headline right below it was from CNET saying One Battle after another. Probably the best movie experience I've had all year. So those are two very different publications agreeing that this is a great movie. So I will be seated.
- [24:12]
Neal Freyman
Today in the Northern hemisphere is the first day of fall, or the autumn equinox, if you're fancy. It's a rare day when day and night share equal time. Toby Favorite Thing about Fall My favorite.
- [24:24]
Toby Howell
Thing about fall is the fact that we're on our way to summer again in three more seasons. I'm a little bit of a summer truth or I'm not necessarily falling for the fall propaganda. Fall is overrated. Too many sweaters. I never know when to wash them. When does a sweater go from clean to dirty? I end up not watching them all year. I'm like, I got to watch these things. So me versus Sweaters versus Fall. Battle of the century.
- [24:45]
Neal Freyman
If someone can just help Toby figure out when he washes his sweaters, turns out that whole like fall just like the rest of us. And finally, the Jewish New Year, Rosh Hashanah begins tonight, which means I'm going to be out for the next two days. Our backup quarterback, Kyle, is going to fill in and crush it like Carson Wentz.
- [25:02]
Toby Howell
Neil, we'll miss you. As always, excited for you to get some time off. But also, Kyle's gone through so many iterations. First he was six man of the year. Now he's a backup quarterback. What if he's just a great co host?
- [25:12]
Neal Freyman
Well, he certainly is that. But also he's from Minnesota, huge Vikings fan. So little Carson West Wentz parallel. I know he's going to even outplay Wentz. That is all the time we have. Thanks so much for starting your morning with us. Have a wonderful Monday and I will see you back here on Thursday.
- [25:27]
Toby Howell
And also, don't forget to head to the link in the show description to sign up for our holiday party. Use code let's ride and we will see you all there.
- [25:35]
Neal Freyman
And if you have any feedback on today's episode, send a note to Morning Brew daily@morning broad.com let's roll the credits. Emily Milliron is our ex Executive Producer, Raymond Liu is our producer. Our associate producers are Olivia Graham and Olivia Lake. Hair and Makeup is pumped for soup season. Devin Emery is our president and our show is a production of Morning Brew.
- [25:54]
Toby Howell
Great show today Neil. Let's run it back tomorrow.
- [26:05]
Neal Freyman
New podcast from Tech Brew the Tech Brew Ride Home is Silicon Valley's favorite podcast. In about 15 minutes every day, you get the top tech stories of the day. What happens, what people are saying about what happened, what Silicon Valley is thinking about what happened. The Tech Brew Ride Home is listened to by everyone who's anyone in Silicon Valley, from the C Suite at Mag7 companies to founders to general partners at firms like A16Z. If you care about tech at all, you need the Tech Brew Ride Home. Subscribe right now. Tech Brew Ride Home.