This report investigates and corrects Senator Bernie Sanders' assertions regarding Larry Ellison's supposed control over the TikTok U.S. algorithm and Paramount Skydance, providing a factual breakdown of ownership stakes and corporate transactions to clarify the true extent of Ellison's influence.
Unraveling the Ownership Web: Beyond Political Rhetoric
The Sanders Allegation: A Misguided Claim of Control
Vermont's independent Senator Bernie Sanders recently criticized a deal involving TikTok's U.S. operations, framing it as an example of crony capitalism facilitated by the Trump administration. He specifically alleged that Larry Ellison, co-founder of Oracle and a right-wing billionaire, would gain oversight of TikTok's content recommendation system. Sanders also linked Ellison to controlling various media assets under the Paramount Skydance umbrella, including major networks and streaming services. The senator's strong remarks were widely shared on social media platform X, culminating in his declaration that such arrangements exemplify an "Oligarchy."
Oracle's Actual Stake: A Minority Shareholder in TikTok U.S.
Contrary to Sanders' claim, a detailed examination of the TikTok U.S. joint venture reveals that Larry Ellison does not, in fact, possess controlling authority over the platform or its algorithm. Oracle participates as one of several investors, holding a 15% ownership stake. Furthermore, Ellison's personal holding of approximately 41% of Oracle's shares as of last July means he does not even have a controlling interest within Oracle itself. Oracle's representation on the TikTok U.S. joint venture's seven-member board is limited to a single seat, currently occupied by Kenneth Glueck, Oracle's EVP in the Office of the CEO. The majority stake in the U.S.-based TikTok remains with Beijing-based ByteDance, which retains 19.9% ownership, a condition met to comply with U.S. laws preventing foreign adversary ownership exceeding 20%.
TikTok's Algorithm Autonomy: Separated U.S. Operations
The TikTok U.S. joint venture operates with an algorithm licensed directly from ByteDance, but crucially, this algorithm is managed independently from the global TikTok platform. The U.S. entity has committed to re-training, testing, and updating its content recommendation algorithm using only U.S. user data, with all related operations securely housed within Oracle's U.S. cloud infrastructure. This setup ensures a distinct operational framework for the American version of the popular video application.
Simon & Schuster Sale: Ellison's Non-Involvement
Sanders' statement also erroneously implied Ellison's control over Simon & Schuster. However, the publishing house was actually acquired by the investment firm KKR from Paramount Global in 2023 for a cash sum of $1.62 billion, a transaction in which Ellison was not involved. This further highlights the inaccuracies within the senator's public remarks.
Paramount Skydance: Ellison's Confirmed Control
While some of Sanders' assertions were incorrect, it is accurate that Larry Ellison has complete control over Paramount Skydance. This outcome follows the acquisition of Paramount Global by Skydance Media, led by David Ellison. The deal received FCC approval in August, with Skydance committing to diversity, equity, and inclusion initiatives and appointing an ombudsman to address bias concerns at CBS. Notably, the FCC's approval came shortly after Paramount Global settled a $16 million lawsuit with former President Trump related to a "60 Minutes" interview. Recent technical issues, including a data center outage, have affected TikTok's U.S. operations, leading some users to mistakenly believe the app was censoring content critical of ICE, further complicating public perception.
The Extensive Reach of TikTok in the U.S.
The TikTok U.S. joint venture continues to be a significant digital platform, serving over 200 million individual users and supporting 7.5 million businesses across the United States. Its broad reach underscores the importance of accurate information regarding its ownership and operational structures.
