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[FCE] Murdoch, Ellison and China: what we know about the US’s TikTok deal | Technology | The Guardian

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TikTok, the widely popular social media platform, is facing a critical moment in the United States as its future hangs in the balance. With approximately 180 million American users, the app, owned by the Chinese company ByteDance, has been under scrutiny for over a year due to national security concerns. US lawmakers have expressed fears that the Chinese government could exploit TikTok to spread false information or manipulate public opinion. In response, a law was enacted in 2024, mandating that TikTok be sold to a US-based company or face a nationwide ban. Although the ban was postponed several times, a major breakthrough has recently been announced.

The White House has revealed that a deal is nearing completion to secure TikTok’s operations in the US. President Donald Trump is set to issue an executive order detailing a plan for a group of American investors to take control of the app. A key partner in this arrangement is Oracle, a leading US software company, which will oversee TikTok’s user data and license its recommendation algorithm—the technology that personalizes video suggestions for users. This ensures that sensitive data about American users remains on US servers, addressing privacy and security concerns.

The agreement also includes prominent business figures such as media tycoons Rupert Murdoch and his son Lachlan, alongside Oracle co-founder Larry Ellison, who are reportedly part of the investor group. Under the new structure, ByteDance will hold less than 20 percent of TikTok’s US operations, with the majority of control transferred to American and international firms. While the US government will not own any stake in the company, it will ensure the arrangement complies with legal standards.

This controversy traces back to 2020 when Trump first highlighted security risks associated with TikTok. Interestingly, his perspective shifted after he joined the platform during a recent campaign, amassing millions of followers. Since then, he has repeatedly delayed the ban to facilitate negotiations. Talks with China have also progressed, and the US believes Beijing has informally approved the deal, though final documentation is pending.

The TikTok saga raises broader questions about the intersection of technology, privacy, and government oversight. As apps become integral to daily life, debates over who controls user data and how much influence governments should wield are likely to intensify. This unfolding story continues to capture attention across the globe.

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1. What is the main reason TikTok has faced challenges in the US?

  • A. It has too few users to be profitable.
  • B. There are concerns about national security.
  • C. Its technology is outdated.
  • D. American companies want to develop a similar app.

2. What role will Oracle play in the new deal for TikTok?

  • A. It will develop a new version of the app.
  • B. It will create content for TikTok users.
  • C. It will manage user data and license the app’s algorithm.
  • D. It will fully own TikTok’s US operations.

3. How has President Trump’s attitude towards TikTok changed over time?

  • A. He has always supported a complete ban.
  • B. He became less critical after using the app himself.
  • C. He has refused to negotiate with ByteDance.
  • D. He insists on owning a share of the company.

4. What can be inferred about the ownership of TikTok in the US under the new deal?

  • A. ByteDance will retain the majority of control.
  • B. The US government will have a direct stake in the company.
  • C. American and international firms will dominate ownership.
  • D. Chinese investors will increase their share.

5. What broader issue does the TikTok situation highlight?

  • A. The need for better social media marketing.
  • B. The debate over technology and government control.
  • C. The lack of popular apps in the US.
  • D. The difficulty of creating recommendation algorithms.