Fox Corp. Eyes Stake in TikTok
▼ Summary
– Fox Corp., led by Lachlan Murdoch, is negotiating to acquire a stake in the new TikTok U.S. entity, with involvement from other investors like Larry Ellison and Michael Dell.
– The deal is driven by a U.S. law that bans TikTok unless its Chinese ownership by ByteDance is reduced below 20%, addressing national security concerns.
– President Trump is expected to approve the deal, which would involve the U.S. government collecting a multibillion-dollar fee from the investors.
– The new TikTok U.S. company would be 80% owned by a consortium of U.S. investors and operate with a U.S.-dominated board, while ByteDance would license the algorithm.
– ByteDance has expressed gratitude to Presidents Xi and Trump and stated it will work to ensure TikTok remains available to American users under the new structure.
Fox Corporation, under the leadership of Chairman and CEO Lachlan Murdoch, is reportedly in discussions to purchase a stake in the newly formed U.S. entity of TikTok. This development comes as part of a broader initiative to restructure the popular video-sharing app’s ownership to comply with American regulations. President Donald Trump confirmed the Murdoch family’s potential involvement during an interview on Fox News, also naming prominent tech figures like Oracle’s Larry Ellison and Dell Technologies’ Michael Dell as prospective investors in the deal.
The exact financial terms remain undisclosed, including the valuation of TikTok’s U.S. operations and the specific share each party might acquire. A spokesperson for Fox Corp. declined to comment on the ongoing negotiations. According to recent reports, President Trump is preparing to issue an executive order approving the arrangement, which would also involve the U.S. government collecting a substantial fee from the American investor group.
This move is driven by legislation that took effect in January 2025, which prohibits U.S. companies from distributing TikTok as long as it remains under the control of its Chinese parent company, ByteDance. The law mandates that ByteDance’s ownership in the U.S. entity must fall below 20%, a condition the proposed deal is designed to meet. President Trump has stated that Chinese President Xi Jinping has endorsed the agreement, and enforcement of the divestiture mandate has been postponed until mid-December to allow finalization.
Should Fox Corp. secure a stake, it is uncertain whether the company would maintain it as a passive holding or explore synergies with its existing assets, such as the free streaming platform Tubi. This potential investment follows Lachlan Murdoch’s recent consolidation of voting control over Fox Corp. and News Corp.
The restructured TikTok U.S. business is expected to be predominantly owned by a consortium including Oracle, Silver Lake, and Andreessen Horowitz, with additional participation from current ByteDance investors. A U.S.-dominated board, potentially including a government-appointed member, would oversee operations. Oracle already provides key technological infrastructure for TikTok in the United States.
Under the proposed terms, ByteDance would license TikTok’s content-recommendation algorithm to the American entity, ensuring its operation remains distinct from the version managed in China.
(Source: Variety)
