Murdochs Identified as Potential US Partners in TikTok Deal
President Donald Trump revealed in a recent Fox News interview that media moguls Rupert Murdoch and his son Lachlan Murdoch are likely to be involved in a consortium aiming to retain TikTok’s operations within the United States. Trump stated, “A man named Lachlan is involved,” further adding that “Rupert is probably gonna be in the group.” This consortium is expected to address national security concerns tied to TikTok’s Chinese ownership. Trump also mentioned that Oracle Executive Chairman Larry Ellison and Dell Technologies CEO Michael Dell are anticipated members of the group, describing all participants as “American patriots” committed to protecting US interests.
Corporate Roles and Clarifications
While Trump referenced Lachlan Murdoch’s individual involvement, sources familiar with the matter suggest that Fox Corporation, where Lachlan serves as executive chair and CEO, may play a role rather than Lachlan personally. The exact nature of Fox Corporation’s participation remains undisclosed. Oracle is expected to lead data privacy management for TikTok in the US, addressing one of the primary concerns regarding user data security and algorithmic transparency. The US government aims to ensure that six of the seven members on TikTok’s controlling board will be American citizens.
Status of US-China Negotiations on TikTok
Negotiations between the US and China continue as President Trump and Chinese leader Xi Jinping discuss the framework for the deal. Trump indicated post-discussion that the deal is progressing and investors are preparing to finalize arrangements. However, China’s state-run news agency Xinhua released a statement emphasizing adherence to market rules and Chinese laws, urging the US to maintain a fair and non-discriminatory environment for Chinese businesses. The statement suggested that significant gaps remain in the negotiations.
Regulatory Context and National Security Concerns
The US Congress passed legislation last year mandating ByteDance to divest its US TikTok operations due to national security risks associated with Chinese ownership. The government’s current approach is to secure TikTok’s operations through American control of the app’s algorithm and data management. White House Press Secretary Karoline Leavitt highlighted that Oracle will lead data and privacy oversight, a critical element in addressing bipartisan concerns about data security and foreign influence.
FinOracleAI — Market View
The involvement of prominent US corporate leaders, including the Murdochs, Larry Ellison, and Michael Dell, signals an attempt to consolidate trusted American stakeholders in TikTok’s future operations. This move seeks to alleviate regulatory scrutiny and national security concerns while maintaining TikTok’s market presence.
- Opportunities: Stabilizing TikTok’s US operations preserves a major social media platform’s revenue and user base, while enabling US oversight of data and algorithms.
- Risks: Ongoing US-China geopolitical tensions and regulatory uncertainties could delay or derail the deal.
- Potential reputational risks for media companies associated with politically sensitive negotiations.
- Market volatility in tech and media sectors stemming from unresolved ownership and control issues.
Impact: The announcement of high-profile American partners enhances the likelihood of a deal that satisfies US regulatory demands, but persistent bilateral tensions and market skepticism will continue to weigh on TikTok’s operational stability in the near term.
