Details of the Deal

The agreement is set to close on January 22, according to an internal memo obtained by News. TikTok’s CEO, Shou Zi Chew, reported that binding agreements have been established with investors Oracle, Silver Lake, and MGX. This new joint venture will see these investors collectively hold 50% of TikTok’s U.S. operations, with Oracle, Silver Lake, and Abu Dhabi-based MGX each holding 15%. Affiliates of existing ByteDance investors will control another 30.1%, leaving 19.9% retained by ByteDance.

The Political Implications

White House officials have indicated that Oracle, co-founded by Trump supporter Larry Ellison, will have access to TikTok’s recommendation algorithm under this deal. This partnership aims to expand Oracle’s current management role over TikTok’s extensive collection of user data, raising questions about government policy on data privacy and foreign influence.

Concerns have arisen regarding the concentration of media power among pro-Trump billionaires. With Ellison’s involvement in TikTok, alongside high-profile figures like Elon Musk at X (formerly Twitter) and Mark Zuckerberg overseeing both Facebook and Instagram, critics warn of diminishing diversity in media ownership. Senator Elizabeth Warren voiced her concerns, stating that the arrangement might grant undue control to Trump’s affluent allies, ultimately affecting public opinion and access to information.

Expert Opinions on Algorithm Control

Rush Doshi, a former National Security Council official who coordinated U.S. government policy on China and Taiwan, raised critical questions about the algorithm’s oversight. He highlighted uncertainties surrounding whether the algorithm will be fully transferred or remain under Beijing’s influence, despite assurances that it will be trained on U.S. data. This ambiguity poses risks to U.S. security and underscores the ongoing debates about election reform and the integrity of digital platforms.

A Long Journey to Ownership

This agreement follows a protracted negotiation process. In September, former President Trump claimed he had received approval from Chinese President Xi regarding the deal. By October, U.S. Treasury Secretary Scott Bessent announced a finalized agreement. Trump’s presidency saw substantial pressure on TikTok, including threats of a ban due to its alleged ties to the Chinese government, framed by concerns over national security during the COVID-19 pandemic.

In April 2024, Congress passed a ban on TikTok, which President Joe Biden signed into law. Although implementation of the ban was scheduled for January 20, 2025, delays ensued as Trump’s administration sought to secure a transfer of ownership amidst rising tensions in foreign affairs.