Lachlan Murdoch’s Team Unites on TikTok Strategy Reversal
The Murdoch family has shifted their TikTok strategy, creating significant buzz in the media landscape. In September of last year, former U.S. President Donald Trump suggested Lachlan and Rupert Murdoch were engaged in negotiations to acquire TikTok’s U.S. operations. This revelation generated considerable speculation and headlines around the world.
Lachlan Murdoch’s TikTok Strategy: Absence from the Deal
In late January, it was confirmed that a consortium purchased TikTok’s U.S. operations for approximately $14 billion (about $19.9 billion). Notably absent from this investor group were Lachlan and Rupert Murdoch, raising questions about their earlier involvement.
Despite rumors indicating Lachlan Murdoch might invest through Fox Corp, the deal ultimately did not materialize. Sources close to Lachlan suggested his hesitation stemmed from doubts about the potential return on investment. These comments reflect a possibly strategic decision to avoid a partial stake in TikTok amidst ongoing challenges.
Insights from Gabriel Sherman
In the forthcoming book, “Bonfire of the Murdochs,” journalist Gabriel Sherman reveals that Rupert notably accepted Trump’s invitation to join the consortium. However, the book reportedly lacks substantial new information regarding this decision.
Background on TikTok’s Acquisition
The context for this acquisition stems from national security concerns raised by the Biden administration. TikTok was compelled to divest its U.S. operations to avoid a potential ban, creating a climate ripe for speculation about its future owners.
Historically, the Murdochs faced significant challenges with social media acquisitions, such as the 2005 purchase of MySpace for $580 million. This past experience may have influenced their current stance on the TikTok opportunity.
Conclusion
Lachlan Murdoch’s decision to refrain from investing in TikTok’s U.S. operations marks a significant pivot for the media titan. As the digital landscape evolves, it remains to be seen how this will affect Fox Corp and its broader strategy in the media industry.
