'Another Backdoor Deal'? Billionaire Trump Ally Larry Ellison at Center of TikTok Spin-Off
"TikTok has officially been sold to the worst people on Earth," wrote one activist, "and no this is not an Onion headline."
A group of investors including Oracle—a software giant led by billionaire Trump ally and GOP megadonor Larry Ellison—is set to control TikTok's US operations under a spin-off agreement formalized Thursday, raising concerns of undue political influence on the short-form video app used by around 170 million Americans.
TikTok's Chinese owner, ByteDance, signed a binding deal under which Oracle, the private equity group Silver Lake, the Abu Dhabi-based firm MGX, and other investors will hold an 80.1% stake in the newly formed US TikTok entity.
NPR reported that under the agreement, "TikTok's US algorithm will be retrained with only Americans' data" and "content moderation rules around what is permitted and what is not will be set by the new investor-controlled entity."
The deal, which stems from an executive order that President Donald Trump signed in September, averts a TikTok ban in the US.
Last year, former President Joe Biden signed widely criticized legislation that would have banned the platform in the US if ByteDance did not sell it. The measure was inserted into broader legislation that included billions in military aid for Ukraine, Taiwan, and Israel.
US Sen. Elizabeth Warren (D-Mass.), who voted for the package that included the potential TikTok ban, called for close scrutiny of the new agreement. Warren pointed to the Trump administration's approval earlier this year of the merger of CBS News owner Paramount and Skydance—a company run by David Ellison, the son of Larry Ellison.
"First Paramount/CBS and now TikTok. Trump wants to hand over even more control of what you watch to his billionaire buddies," Warren wrote in a social media post on Thursday. "Americans deserve to know if the president struck another backdoor deal for this billionaire takeover of TikTok."
Evan Greer, director of Fight for the Future, wrote in response to the deal that "TikTok has officially been sold to the worst people on Earth and no this is not an Onion headline."
