Murdoch, Ellison, and China: Insights into the U.S. TikTok Trade | Technology

For a week now, the White House has indicated that a deal is on the horizon to transfer TikTok’s ownership to an American company. Donald Trump is set to sign an executive order this week that will establish a framework for a consortium of investors to take over the operations of the US-Chinese social media platform.


On Monday, officials from the White House revealed that US software company Oracle would license TikTok’s recommended algorithm as part of the agreement. This collaboration expands the existing management of TikTok data collected from US users.


The US president had a phone conversation with Chinese President Xi Jinping on Friday, sharing on Truth Social that the call was “very good” and expressing gratitude for “TikTok’s approval.” Earlier in the week, leaders from both countries met in Madrid, Spain, to discuss trade agreements related to TikTok’s ownership.

The status of popular apps in the US has been uncertain for over a year, stemming from a 2024 Congressional vote that overwhelmingly approved a law banning social media apps unless they could find US buyers. The Supreme Court upheld the law in January, but on his first day in office, Trump signed an executive order delaying the ban. He has consistently postponed TikTok’s ban, which was initially his proposal, until a deal could be finalized.

Here’s what we know about the forthcoming agreements, including the involvement of media moguls and Oracle’s Larry Ellison alongside the Murdoch family, who recently surpassed Elon Musk as the richest individuals globally:


What are the terms of the transaction?

The deal aims to keep TikTok operational in the US, but under new ownership that is not linked to China. Lawmakers argue that a popular social media app owned by a Chinese entity poses risks, enabling potential propaganda spread among its 180 million US users.


At least 12 investors have shown interest in acquiring TikTok, including a consortium led by software giant Oracle. A complete roster of investors has yet to be disclosed. According to White House officials, Oracle is responsible for managing data for US users and overseeing TikTok’s influential recommendation algorithms, ensuring that information remains outside the jurisdiction of Chinese authorities.

ByteDance will ultimately retain less than 20% ownership of the app, as White House officials told Reuters, with US TikTok operations managed by a blend of existing US and global firms, along with new investors devoid of ties to Chinese authorities.

The agreement mandates that all data pertaining to US users be stored domestically within cloud infrastructure managed by Oracle.


Who is involved?

Trump mentioned in a Fox News Sunday interview that media tycoon Rupert Murdoch and his son Lachlan, CEO of Fox Corporation, might join the deal. He also indicated that Michael Dell, CEO of Dell Technologies, is involved.


Larry Ellison, co-founder of Oracle, has been a key player among the potential buyers for quite some time. He leads a consortium that includes asset manager Blackstone, private equity firm Silverlake, Walmart, and billionaire Frank McCourt.

According to Reuters, the US government will not have a seat on the board or a golden share in the new entity that owns TikTok within the US. It remains uncertain if the US government will receive financial considerations as a condition for approval.


Why is this happening?

The prospect of banning TikTok began with Trump in 2020, citing that apps owned by China pose national security risks. This issue soon garnered bipartisan consensus, leading Congress to overwhelmingly pass a law last year that mandated the app’s ban unless sold by its Chinese owners. The initial deadline for TikTok’s ban was set for January 19th.


After embracing the app during his presidential campaign last year, Trump shifted his perspective on TikTok, gaining millions of followers and hosting TikTok CEO Shaw Chew at Mar-a-Lago and the White House. The president has praised social media platforms for enhancing his connection with younger voters in the 2024 election.

Trump issued the first executive order in January to delay the TikTok ban, subsequently signing three more orders to postpone enforcement until a deal could be reached. Currently, the president is delaying the enforcement of the law until mid-December, as transaction details are settled to ensure the new ownership is eligible for a complete sale.


What does the executive order do?

The order is expected to delineate the framework of the TikTok transaction and ensure the agreement complies with US law. The proposal reportedly includes a seven-member board comprised of Americans, and TikTok’s algorithm will be leased to the new US owner.


Trump’s executive order is anticipated to feature a new 120-day suspension of enforcement to facilitate investors and finalizing contracts.


Does China agree?

The US is optimistic about China’s approval of the deal and doesn’t plan further discussions with Beijing on the details, as White House officials explained to reporters during a conference call. However, they noted that additional documentation from both parties would be necessary for deal approval.


China has yet to confirm its approval of the transaction. ByteDance stated that while discussions about the app’s resolution are ongoing with the US government, any contracts will be “subject to approval under Chinese law.”

Source: www.theguardian.com

Trump Claims Rupert and Lachlan Murdoch Are Involved in Our TikTok Deal

Rupert Murdoch and his son, Lachlan Murdoch, are expected to acquire TikTok in the US, as Donald Trump mentioned during an interview on Sunday.

In an interview with Peter Doocy at Fox News’ Sunday briefing, the president was asked about the app’s sales status. Officials from the Trump administration indicated that transactions involving China-owned social media platforms are forthcoming, resulting in some confusion regarding the status of the contract.

Trump stated that moguls Larry Ellison and Michael Dell were participating in the deal, adding:

“Rupert will likely be part of the group. I believe they will join the team. They are fantastic individuals, well-known in their fields, and they are true American patriots. They care about this country, which will ensure they perform admirably.”

Part of these transactions includes Fox Corporation as one of TikTok’s investing entities. According to a report by CNN on Sunday, Rupert and Lachlan are not participating as individual investors.


Representatives from Fox, which is owned by Rupert Murdoch and led by his son Lachlan Murdoch, did not respond to a request for comment. Trump’s remarks followed his lawsuit against Rupert Murdoch’s Wall Street Journal regarding the publication revealing that he wrote crude poems and graffiti for a book edited for Jeffrey Epstein’s 50th birthday back in 2003.

In 2024, Congress enacted a law banning TikTok, owned by the China-based company ByteDance, unless it was sold to a US entity, citing national security and privacy issues. The Trump administration delayed the law and extended the deadline for the transfer multiple times. Currently, the app has approximately 170 million users in the US, and feels Trump contributed to his re-election in 2024 on Sunday.

White House Press Secretary Caroline Leavitt reported to Fox News on Saturday that six Americans will hold seats on the company’s seven-member committee, managing data and privacy through Oracle, Ellison’s firm. Leavitt indicated that the US also governs data and algorithms for American applications.

“This deal prioritizes America,” Leavitt affirmed on Saturday. “Let me clarify: this transaction ensures that TikTok is predominantly owned by Americans.”

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Source: www.theguardian.com

‘Artists Join Forces with Murdoch in Fight Against Unauthorized AI Content Scraping’

IIt’s an unlikely alliance between billionaire media mogul Rupert Murdoch and a group of top artists including Radiohead singer Thom Yorke, actors Kevin Bacon and Julianne Moore, and author Kazuo Ishiguro.

This week they launched two very public battles with artificial intelligence companies, accusing them of using their intellectual property without permission to build increasingly powerful and lucrative new technologies.

More than 13,000 creative professionals from the worlds of literature, music, film, theater and television have issued a statement saying that programs such as ChatGPT, where AI companies train their work without permission, are interfering with their lives. It warned that it posed a “serious and unwarranted threat”. By the end of the week, that number had nearly doubled to 25,000.

This comes as Murdoch, the owner of News Corp., a publishing group that owns the Wall Street Journal, The Sun, The Times, The Australian, and others, has warned Perplexity, an AI-based search engine, of illegal activities. This was the day after the company filed a lawsuit alleging that Some of his journalism in the US title has been copied.

The Stars’ statement supports the idea that creative works can be used as training data for free on grounds of “fair use” (a US legal term meaning no permission from the copyright owner is required). It is a collective effort to dissent. Adding to their ire is the fact that these AI models can be used to produce fresh work that competes with human work.




Rupert Murdoch has filed a lawsuit against Perplexity, an AI-powered search engine. Photo: Noah Berger/AP

AI was a major sticking point in last year’s double strike by Hollywood actors and screenwriters, who agreed to ensure new technology remains under the control of employees rather than being used to replace them. Secured. Several ongoing lawsuits could determine whether the copyright battle is similarly successful.

In the US, artists are suing the tech companies behind the image-generating devices, a major record label is suing AI music creators Suno and Udio, and a group of writers including John Grisham and George R.R. Martin is suing ChatGPT developer OpenAI for alleged copyright infringement.

In the fight to make AI companies pay for the content they scrape to build their tools, publishers are also pursuing legal avenues to get them to the negotiating table to sign licensing agreements. There is.

Publishers such as Politico owner Axel Springer, Vogue’s Condé Nast, the Financial Times and Reuters have signed content deals with various AI companies, and in May, News Corp. has signed a five-year contract with Open AI, reportedly worth $250 million. In contrast, the New York Times filed a lawsuit against the creators of ChatGPT and sent a “cease and desist” letter to Perplexity last week.

But in the UK, AI companies are lobbying for legal changes to allow them to continue developing tools without the risk of infringing intellectual property rights. Currently, the text and data mining required to train generative AI tools is only permitted for non-commercial research.

This week, Microsoft CEO Satya Nadella called for a rethink of what “fair use” is. He argued that the large-scale language models that power generative AI do not “regurgitate” the information they have been trained on, and that this would be considered copyright infringement.

Labour’s new minister for AI and digital government, Ferial Clarke, recently said she wants copyright disputes between creative industries and AI companies to be resolved by the end of the year.

she said it might be in there
Form of amendment to existing or new law
opening up the possibility of new provisions allowing AI companies to collect data for commercial purposes.




Actor Kevin Bacon is among those fighting back against AI. Photo: Richard Shotwell/Invision/AP

While news organizations publicly oppose AI-based content abuse, behind the scenes many are adopting technology to replace editorial functions, with commercially-strapped publishers using the technology at a cost. There is growing fear among staff that they will be used as a Trojan horse to enable retrenchment and redundancies.

Last month, the National Union of Journalists launched a campaign to highlight the issue.
“Journalism before algorithms”.

“With wage stagnation, below-inflation wage increases, newsroom staff shortages, and increasing layoffs, there is a need to consider the use of AI,” the paper said. “Threats to journalists’ jobs are considered top of mind… AI is no substitute for real journalism.”

“There are questions about how much publishers themselves are using these tools,” said Niamh Burns, senior research analyst at Enders Analysis. “I think the amount of adoption is low, and there’s a lot of experimentation going on, but I can see a world where publishers are using some of these tools heavily. We need to be realistic about the scale of the opportunity we create.”

Burns said that so far, publishers’ willingness to use AI tools to directly influence or create editorial content has largely depended on how commercially pressurized the media landscape is for their operators. He said that it is related to whether the

BuzzFeed’s once-mighty market value has fallen from $1 billion during its 2021 flotation to less than $100 million.
Rapid AI adapter Against the backdrop of drastic cuts in the news department and sharp decline in income.

And Newsquest, the second-largest newspaper in Britain’s beleaguered local and regional newspaper market, has embarked on initiatives such as rapidly increasing the role of “AI-assisted” journalism.

However, quality national newspapers and media brands remain very cautious, and many, including the Guardian, have set strict principles to guide their work.

But behind the scenes, AI tools are being leveraged to help categorize large datasets and help journalists report on new and exclusive content.

“I think the media companies that are most exposed to commercial risk in the short term are also at risk of overreaching,” Burns said.

“A lot of it has to do with commercial models, where you rely on advertising from a lot of traffic on social platforms and all you need is scale and not quality, where AI can be very helpful.

“But creating generative AI content is never worth the cost or risk.” [for quality national titles]. And for any publisher, producing more conventional journalism comes with long-term costs to quality and risks to competitiveness. ”

Source: www.theguardian.com