Facebook and TikTok top social media news sources, Pew Research finds

A new report by Pew Research finds that Facebook and TikTok are key news sources, with 38% of U.S. adults regularly getting news updates from Facebook and 20% from TikTok and Instagram. YouTube and Facebook remain the leading social media news sources, while X's value as a news source has declined following Elon Musk's takeover. Half of U.S. adults get at least some news from social media, with Facebook and YouTube being the most popular platforms.

A recent executive order signed by President Trump has paved the way for TikTok to remain operational in the United States, after facing a potential ban due to concerns over Chinese ownership. The social media app, which has been a significant news source for many Americans, will now be controlled by a consortium of American investors and companies.

The new ownership structure includes software giant Oracle, private equity firm Silver Lake, and MGX, an AI-focused investment firm established by the government of Abu Dhabi. These entities are expected to own around 45% of the new TikTok, with ByteDance, the Chinese parent company, retaining 19.9% ownership. The remaining 35% will be held by a broader group of investors, including existing ByteDance shareholders such as KKR, Sequoia, and Susquehanna.

The deal values the U.S. operations of TikTok (excluding its lucrative algorithm) at around $14 billion, significantly less than its 2024 estimated revenue of $22 billion. The biggest face of the deal is Larry Ellison, the cofounder of Oracle and the world's second-richest person. Ellison's relationship with the government and his friendship with Trump are key factors in this deal. Oracle is expected to play a significant role in TikTok's security and data management, with Ellison's company potentially gaining from government contracts and increased data handling.

Other notable investors include Michael Dell, Rupert Murdoch, and several private equity firm partners. Dell Technologies, which has a long-standing partnership with Oracle, and News Corp, controlled by Murdoch, are also expected to be part of the new ownership group. These relationships highlight the interconnected web of billionaires and their political connections.

The new U.S. TikTok ownership aims to address data and privacy concerns by ensuring the app is run by American investors and companies. However, the deal also raises questions about potential influence from these billionaires and their political ties on the app's content and distribution. The full roster of investors and their specific roles in the deal will be revealed in the coming days.