TikTok and E.A. Sale

An executive order has been signed by the president of the United States approving the sale of TikTok (originally owned by ByteDance, a Chinese company) to Oracle for only approximately $14 billion. For reference, Elon Musk acquired Twitter for around $44 billion. The deal occurred due to national security worries; TikTok faced threats of being banned in the U.S. and would only be allowed to remain there if sold to American investors. Larry Ellison, the multi-billionaire with a net worth of over $130 billion and a close friend to the president, adds massive financial support and influence to the deal. 

Meanwhile, Electronic Arts, or E.A.—the company behind games such as The Sims, Battlefield, and almost every sports game—has agreed to be acquired by a variety of investors, including the Public Investment Fund (PIF) of Saudi Arabia, Silver Lake, and Affinity Partners. The deal is valued at $55 billion, which is potentially one of the largest deals in the gaming industry ever. 

The change in ownership of TikTok means users should expect change. TikTok’s algorithm (one of the major concerns of the national government), previously controlled by ByteDance, may undergo various changes under new management. The algorithm may steer towards more moderated content and away from overseas content. E.A. can also expect change; the company will go “private”, meaning new investors will have the final say when it comes to strategy, development, and funding. The sale also emphasizes foreign influence on gaming and culture. In fact, the Prince of Saudi Arabia and chairman of the PIF is a gamer and has expressed interest in first-person shooters.