Episode summary
TikTok’s Algorithm to Be Secured by Oracle in Trump-Backed Deal | Bloomberg Intelligence
Bloomberg Intelligence
· · Hosts: Paul Sweeney, Scarlet Fu · Guests: Mandeep Singh, Anurag Rana, Sam Fazeli, Mark Gurman, John Butler
Summary
Oracle is emerging as the central U.S. operator in the planned TikTok restructuring, with the White House saying the company would recreate and secure a new U.S. version of the app’s algorithm. The guests said the algorithm was the key sticking point, and that Oracle already hosts TikTok data, but they also warned the deal could become messy because it involves multiple private investors and a likely split between control of data, software and operations. They argued that regulators may accept the arrangement if Oracle can say it has control over both the data and the algorithm.
The conversation also highlighted how the TikTok fight is increasingly about AI, not just social-video recommendations. The guests said the real prize is the video data that could help train large language models, though they questioned whether a crowded ownership structure would allow a clean long-term strategy.
On healthcare, Pfizer’s roughly $4.9 billion agreement to buy Metsera was framed as a bid to catch up in obesity drugs, while the guests said Oura’s $875 million raise values the smart-ring maker at about $10.9 billion and gives it room to scale production, software and retail expansion. John Butler said T-Mobile’s CEO succession was expected and said the next strategic issue is whether the carrier finally pushes harder into fiber broadband, where the U.S. still trails Canada and Europe.
Key takeaways
- Oracle is positioned to run the new U.S. TikTok algorithm, but the guests said the deal still hinges on how control is split among investors and operators.
- The guests argued the bigger strategic prize in TikTok is video data for AI and LLM training, not just the recommendation engine.
- Pfizer’s $4.9 billion Metsera deal is a move to gain exposure to obesity drugs, but the pipeline is still early and phase 3 data is not yet in hand.
- Oura’s nearly $11 billion valuation reflects strong demand and rapid sales growth, but it also makes a sale to a strategic buyer less likely.
- John Butler said T-Mobile’s new CEO will be judged on whether he accelerates fiber broadband expansion, where the U.S. remains only about 30% penetrated.
Notable quotes
“the algorithm would be rewritten or they would be licensing it. That is that was a sticking point all along”
“This nearly 11 billion valuation, this is a, you know, a pretty specific hardware company”
How the episode opens
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All right, let's talk tech. There's a lot going on out there. I want to see I'm doing this for for John Tucker. He's a big Tik Tok uh per person here and he's really interested to see what's going to be happening out there.
What's his handle — With Yeah. What is — Love those 30 secondond videos about really stupid stuff. — Exactly. — Cats on Roombas, right? Got to have it. — Love it. — That's why when we talk about cats on Roombas, we talked to our senior technology analyst at Bloomberg Intelligence, Mandep Singh, Honor Rana. Mandep's here in our studio. Honors uh in our Chicago bureau. Um, let's just talk, Mandy, just what's the latest on Tik Tok here because I'm seeing some big private equity guys might be involved, some big tech names may be involved. What's going on here with Tik Tok?
Yes, I think uh the White House is definitely uh keen to get a deal done and uh as you said, there are multiple parties involved. Oracle is the publicly traded entity that's uh front and center in terms of being the lead company that will be owning Tik Tok along with these other private investors. And look at the end of the day it's clear the algorithm would be rewritten or they would be licensing it.
That is that was a sticking point all along. So uh Oracle already has the data for Tik Tok in their data center.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- tiktok algorithm security
- oracle trump-backed deal
- ai/tech industry analysts
- obesity drug market
- telecom executive changes
Companies and tickers mentioned
- ORCL
- PFE
- TMUS
- Oracle Corp.
- TikTok
- Pfizer
- Metsera
- Oura Health Oy
- T-Mobile US Inc
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Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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