Trump says Murdochs are potential TikTok deal partners
News Summary
U.S. President Donald Trump stated in an interview that conservative media mogul Rupert Murdoch and his son Lachlan are likely to be involved in the deal to save TikTok in the United States. He also indicated that Oracle executive chairman Larry Ellison and Dell Technologies CEO Michael Dell are expected to join the deal. Separately, the White House previously detailed that six of the seven-member board controlling TikTok would be Americans, and the U.S. would control the app's algorithm, with Oracle leading data and privacy for the U.S. app. Trump described the deal as “well on its way,” but a statement from China's state-run Xinhua suggested that the two sides remain further apart in negotiations, emphasizing market rules and a fair business environment.
Background
In 2025, the Trump administration has maintained pressure on TikTok's U.S. operations, primarily citing national security risks regarding potential Chinese government access to user data. This has led to demands for TikTok to divest its U.S. business or be sold to an American entity. Oracle has previously shown interest in acquiring TikTok's U.S. operations and played a key role in prior negotiations. These discussions unfold against a backdrop of ongoing U.S.-China tensions over technology and data governance, highlighting the complexities of digital sovereignty and geopolitical competition.
In-Depth AI Insights
What strategic signals does the inclusion of prominent U.S. media and tech figures like the Murdochs, Ellison, and Dell in the TikTok deal send? The move likely indicates multi-layered strategic intentions: - Political Influence and Content Control: The Murdochs' involvement, particularly given their sway in conservative media, may aim to ensure TikTok's content and narrative align with U.S. interests, further solidifying control over the information ecosystem. - Technological Sovereignty and Data Security: The inclusion of Ellison (Oracle) and Dell underscores the U.S. intent to control critical technology infrastructure and data security, ensuring American user data is processed and stored by U.S. entities with U.S.-controlled algorithms. - Building a “Patriotic” Alliance: President Trump's description of these individuals as “American patriots” suggests a government effort to construct a consortium of businesses with strong American ties and loyalty to manage TikTok, addressing concerns about Chinese influence. Given the differing accounts of deal progress from the U.S. and China, what are the potential hurdles or areas for compromise in future negotiations? The discrepancy in statements reveals underlying disagreements and potential areas for compromise: - Sovereignty and Control: The U.S. seeks full control over TikTok's algorithm and data, while China emphasizes adherence to market rules and Chinese laws, which could imply Beijing's desire to retain export review rights over technology or some influence over ByteDance's core assets. - Technology Transfer and Valuation: Negotiations may face friction over the specific scope of technology transfer and the deal's valuation. China may be reluctant to easily cede its algorithmic advantages and could seek a higher valuation. - Geopolitical Chess Match: The TikTok deal has transcended business, becoming a microcosm of U.S.-China technological and geopolitical competition. Any agreement will require a delicate balancing act between the national interests of both countries, making negotiations fraught with uncertainty and likely requiring higher-level political compromise. What are the potential implications of this deal for other Chinese technology companies operating in the U.S.? The ultimate outcome of the TikTok deal will set a significant precedent for other Chinese tech companies operating in the U.S.: - Increased Scrutiny: If the U.S. successfully implements stringent control measures (e.g., algorithm control, majority U.S. board), it could signal that all Chinese apps and tech companies operating in the U.S. will face heightened scrutiny over data sovereignty and national security. - Business Model Adjustments: Chinese tech companies may need to re-evaluate their U.S. business models, considering similar structural changes (e.g., forming independent U.S. entities, partnering with U.S. tech firms, or localizing data storage) to comply with U.S. regulatory demands and mitigate political risk. - Geopolitical Risk Premium: Investors will continue to factor in a higher geopolitical risk premium when evaluating Chinese tech companies, especially those in sensitive technology and data sectors.