Bernie Sanders Says Thanks To Trump Larry Ellison Gets To Control TikTok US Algorithm And That Is What 'Oligarchy' Looks Like

TikTok's last-minute deal to avoid a nationwide ban has invited criticism from Sen. Bernie Sanders (I-Vt.), warning that the platform's rescue hands even more influence to billionaire Larry Ellison and his expanding media empire.

TikTok Deal Averts Ban, Shifts Control to U.S. Investors

Last week, TikTok secured its future in the U.S. after Chinese parent ByteDance finalized a deal creating a new entity, TikTok USDS Joint Venture LLC, to comply with a 2024 law requiring divestment or a ban.

Under the agreement, American and global investors will own 80.1% of the venture, while ByteDance will retain a 19.9% minority stake.

Oracle Corp. (NYSE:ORCL), Silver Lake and Abu Dhabi-based MGX will each hold 15% and serve as managing investors.

TikTok said U.S. user data and its recommendation algorithm will be hosted on Oracle's U.S.-based cloud infrastructure, with added privacy and cybersecurity protections.

The algorithm will also be retrained and tested using only U.S. user data.

Bernie Sanders Sounds Alarm Over ‘Oligarchy'

Sanders, an independent from Vermont, criticized the outcome on X, arguing that the deal concentrates too much power in the hands of a single billionaire with close ties to President Donald Trump.

"Thanks to Trump, right-wing multibillionaire Larry Ellison will now control the TikTok algorithm," Sanders wrote, adding that Ellison-linked entities also influence major media brands. "This is what oligarchy looks like."

Ellison Family's Expanding Media Footprint Draws Scrutiny

Concerns have grown as Ellison-backed Paramount Skydance (NASDAQ:PSKY) now controls CBS, MTV, Nickelodeon, BET, CMT, Paramount+ and Pluto TV following its merger.

Bari Weiss, founder of The Free Press, was also last year named editor in chief of CBS News and will report to Skydance CEO David Ellison, Larry Ellison's son.

Paramount Skydance is also locked in a high-stakes battle with Netflix Inc. (NASDAQ:NFLX) over Warner Bros. Discovery (NASDAQ:WBD), a fight that could further reshape the U.S. media landscape.

Oracle stock scores low on Momentum and Value in Benzinga's Edge Stock Rankings, with a negative price trend in the short, medium and long terms.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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