Last week, Donald Trump disclosed that the US and China are close to finalizing a deal to allow Tiktok to continue operating in the United States. While the specifics are not yet settled, the proposed agreement could see the owners of the most prominent cable television networks in the US assume control over the nation’s influential social media platforms. This arrangement would grant Trump’s billionaire allies significant influence over the vast and unique landscape of US media.
Here’s what we know: Trump stated that he has received provisional approval from China’s President Xi Jinping for a deal whereby the US version of Tiktok would gain a fresh set of domestic investors, spearheaded by the software giant Oracle. This arrangement would also protect Tiktok’s respected recommendation algorithm while enhancing its security.
Among the investors mentioned, Trump pointed out during a Fox News interview on Sunday that media tycoon Rupert Murdoch and his son Lachlan, CEO of Fox Corporation, are involved. Additionally, Michael Dell, the head of computer manufacturer Dell, is expected to take part as well.
Tiktok is reportedly set to appoint seven new board members, with six of them being American. Notably, it seems that Rupert Murdoch, Lachlan Murdoch, and Oracle’s Larry Ellison, along with the CEO of Paramount Skydance and Larry Ellison’s son, will occupy several of these positions.
Murdochs
Lachlan Murdoch, aged 54 and the son of 94-year-old Rupert, serves as the executive chair and CEO of Fox Corporation, the parent company of Fox News. Lachlan took over the company following a legal settlement with his brothers in September, one of whom, James, has distanced himself from their father’s conservative empire. The Tiktok deal might involve investments from Fox’s parent company rather than directly from Rupert or Lachlan, as reported by CNN.
“I hate to tell you this, but there’s a guy named Lachlan involved. Do you know who Lachlan is? It’s a very uncommon name, Lachlan Murdoch,” Trump remarked. “Rupert will likely join the group. I think they will be part of it. There are others involved as well. They are exceptional people, very well-known, and American patriots who love this country, so they’ll do a great job.”
If oversight of Tiktok happens, it would provide Elder Murdoch with new opportunities in technology—similar to how News Corp acquired MySpace for $580 million in 2005. While MySpace peaked as the most visited website in the US three years later, it was quickly overshadowed by Facebook, and as Bloomberg’s billionaire index indicates, Mark Zuckerberg is now worth ten times more than Rupert Murdoch.
Ellison
Trump seems to have a penchant for father-son duos. On the opposite end of Tiktok’s American boardroom, 81-year-old Larry Ellison, co-founder and CTO of Oracle, alongside his 42-year-old son David, the founder of Skydance Media, may play significant roles.
Larry Ellison holds about 40% of Oracle’s shares and has been a fixture in Silicon Valley, temporarily surpassing Elon Musk as the world’s richest person following Oracle’s impressive revenue report. He is also a longtime supporter of Trump, hosting a presidential fundraiser at his Southern California home in 2020, and is known for his luxurious lifestyle and ventures in Hawaii.
David Ellison’s company has made a significant mark in the entertainment sector, managing CBS, BET, Nickelodeon, Paramount+, and UK Channel 5. Following a recent acquisition of Paramount, which also produces the Mission: Impossible franchise, Paramount Skydance is reportedly planning a cash offer to acquire Warner Bros. Discovery, which owns CNN, HBO, DC Comics, and other major properties.
Leading up to this merger, CBS News reached a settlement over a lawsuit regarding ‘60 Minutes’, appointing Trump allies as ombudsmen and courting former New York Times columnist Bari Weiss as a potential leader for the channel’s revamped version. This could serve as a precursor to how David Ellison might manage Tiktok.
How Powerful Will They Become?
Should Tiktok’s deal and David Ellison’s acquisition of Warner Bros. Discovery proceed, the combined power of the Murdochs and Ellisons would be immense. They would control media outlets that engage both older and younger demographics, yielding significant authority and sway. The only age group potentially unaffected by their influence may be those on Tiktok, who are skeptical of their parents’ viewing trends.
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Is such integration legal? The Federal Communications Commission’s website includes stringent anti-monopoly regulations regarding television broadcasting. Regulations do not specifically address Fox News Channel or CNN.
Nevertheless, such regulations are pertinent. What implications arise when the owner of the most powerful cable channels in the US also controls the nation’s critical social media platforms? Might this breach antitrust laws?
The answer may lie within the regulations, particularly surrounding changes made eight years ago that lifted the ban on owning both television stations and daily newspapers in the same market. This decision was based on the claim that entertainment, news, and information had diversified significantly within the modern media landscape.
If an individual owns a local television station and its newspapers, why shouldn’t billionaires be able to oversee extensive social networks and the country’s leading channels?
Examining the intricacies of FCC regulations may not be as crucial as Trump’s influence, which plays a significant role in high-level decisions by the US government. Trump’s administration has successfully influenced the FCC to facilitate deals that levy pressure on networks outside of his allies’ control. Recently, the Supreme Court ruled that Trump could dismiss the singular Democrat on the committee, with Secretary Brendan Carr’s role in overseeing Jimmy Kimmel’s program suspension being questioned.
The American media landscape is taking on a distinctly Republican hue as Trump’s Tiktok transaction unfolds. Nexstar, the largest owner of local US television stations, expressed alignment with Trump’s decision to halt Kimmel’s shows, mimicking local television giant Sinclair. Currently, CBS and CNN, two major news networks, may soon be following Fox’s conservative trajectory. Online, X has shifted from a diverse platform to a more conservative social network, and Tiktok may follow suit under a board approved by MAGA.
At this juncture, the Murdochs and Ellisons appear to be benefiting from Trump’s favor.
Source: www.theguardian.com
