Sponsored by RockWater

Did anyone seriously believe TikTok would ever be banned in the US?

To be honest, I believed the can would be kicked down the road indefinitely until we forgot that pesky law was ever signed.

But 2025, whenever the deadline loomed, everyone in social media had this in the back of their heads…

How can you build on a platform that has a chance, though small, to disappear?

No longer an issue! But now we can go through the slew of new issues!

I’ll break down the biggest concerns I’ve heard about regarding the new US TikTok.

Also in this edition:

🤔 Does Creator Rep M&A Work? (My New Opinion Section!)

🧾 MrBeast’s Salesforce Commercial Went From Tweet to Real

‼️ Netflix’s Big Week for Social Media Stars

✍🏽 Substack Launches a TV App

📱 Public Service Announcement: You Can Record in Public Places

💪🏼 Jobs from TikTok in this special ‘all TikTok’ job board!

🎭 …and a dank meme from yours truly!

Let’s get into it.

NEWS:

TikTok is Now One of U.S.

TLDR:

  • TikTok is now officially owned by a mostly US joint venture between Oracle, Silver Lake, and AGX with ex-TikTok Operations Head Adam Presser as the new CEO.

  • New Terms of Service went out for the app and enterprise partners with some notable differences, some which have sparked concern.

  • A lot of ink has spilled on the new ownership’s groups politics, particularly Oracle’s Larry Ellison who is deeply involved in Conservative politics.

After Elon’s takeover of Twitter went so poorly, most of us are a bit nervous about new ownership of our favorite apps.

I spent a decade building 25,000 loyal Twitter followers only to have them all leave the app within a few months.

Ouch.

So will this happen to TikTok with new ownership?

Not likely. But we’re in the early days. So let’s do some wild speculation based on what we know so far.

  1. The Terms of Service and Privacy Policy have officially changed. And it’s not all bad! For example, there is a clause that now explicitly bans unlabelled AI content. That’s awesome! And it also broadens its data collection and ad serving outside of the app. That’s not awesome, but on-par with their competitors! As people actually read the terms of service (*GASP!*) many people realized TikTok has been gathering sexual orientation and immigration status, which was then wrongfully labelled as a change instead of always being there. Also, not great in the wrong hands.

  2. Larry Ellison has been pretty dang partisan lately: Larry Ellison was pretty quiet on the political scene until Trump came along, and now he’s been very cozy, particularly on issues around keeping Big Tech unregulated and his financial ties to Benjamin Netanyahu, both of which leave users to wonder whether there will be room for more liberal political speech on the new app. But, even more broadly, Elon’s buddy who even Twitter rejected to be on the board Egon Durban is part owner, 20% of the ownership still sits with ByteDance bringing up continued concerns around China’s access to data, MGX owns 15% and is based in Abu Dhabi which is *checks notes* not in the US, and, of course, on a very female-forward app there are no women on the board. Trump referring to the new owners as ‘true patriots’ did little to assuage fears of government control of policy and censorship.

  3. The New Entity Will ‘Retrain’ The Algorithm: Let’s face it: TikTok is the algorithm. The For You Page is incredible. It truly knows me better than me. So will it still be top-notch when it starts anew? In their own words: “The Joint Venture will retrain, test, and update the content recommendation algorithm on U.S. user data. The content recommendation algorithm will be secured in Oracle’s U.S. cloud environment.” To me, that screams, “It’s going to stink for a while.”

Okay, now let’s talk about the mysterious Adam Presser who is stepping in as the new CEO.

Quick note: I had a chance to talk to someone who has worked very closely with him in the past who said he’s a great guy, so I may be biased.

But he seems experienced in the right ways.

Harvard Business. Harvard Law. Speaks Chinese. Lived in China for a while.

He cut his teeth in traditional Hollywood working at Warner Bros handling their Chinese business.

Once he settled into TikTok, he elevated to the Trust and Safety Chief, something that the new app will need in spades.

Of course it wouldn’t be the internet if a controversial statement from his past didn’t surface, so may I be the first to present to you the video that everyone is sharing on every social platform right now.

Good luck, new TikTok! We need you. Mostly to just not screw it all up!

Have you thought about selling your creator business?

RockWater advises owners in the creator economy on the sale of their business. We have the largest buyer network, and negotiate the best deals possible for our clients. We’re proud to be the industry’s top M&A advisor.

We recently advised on the sale of Feedfeed, a social media publisher and creator network, to People Inc., a publicly traded media co. We’ve also advised Click Management (sale to GameSquare), Lionize (an IM platform, sold to gen.video), Long Haul Mgmt (sold to Wasserman), Bottle Rocket Mgmt (sold to Night), Bounty (a UGC platform, sold to gen.video), and more deals are in the works.

If you want a POV on your company’s valuation and readiness for a sale, reach out to to [email protected] to setup an intro call.

TAMO (Thoughts are my Own):

Creator Rep M&A Isn’t What it Seems

It’s wild how many talent representation firms are getting bought these days.

But I’m someone who, throughout my career, has had my talent org acquired, have acquired talent orgs, and have acquired talent managers, so I have a unique look into all sides of this market.

So listen up talent reps, investors, and media conglomerates while I tell you the absolute truth:

Most of it is doomed.

When you acquire a company, you generally do so assuming that your combined powers will make something bigger.

1 + 1 = 3.

Or, in most M&A projections, 1 + 1 = 10…billion

But in talent representation, that simply isn’t how most companies are structured. Because they, at their core, are doing the same thing.

When you purchase a company, you do so on a multiple of revenue (how much money the company is bringing in), a multiple of EBITDA (how much money they’re hold onto), or enterprise value (market ownership, patents, that one mad scientist who figured out cold fusion).

When the #1 asset is ‘creators’, you’re buying short-term revenue (creators can and usually do leave eventually) on a multiple of revenue, or for more than the company makes in a year.

So that means one of two things have to be true:

  1. Your systems have to be so good that you can take a $10 million book of business, and through your genius, make it a $20 million book of business within a few years.

  2. Their systems have to be so bad that your so-so business can bring them up to the norm, making up for the disparity.

Now you may be asking, “Phil, what about buying the team? If these are the people that grew such a great management org so it could eventually sell, can’t they do it again?”

Well, again, people leave companies.

I just popped into the LinkedIn profiles of my 10 favorite reps and most stay at each company around two or three years.

And if they’ve thrived at a company that does things one way, will they continue to thrive when they have to conform to a new culture, particularly one that has to create ‘efficiencies’ to make their investment worthwhile?

That’s historically been the bigger issues. People who thrive at small companies often thrive because they’re small companies, and once they have to sit in 10 hours of meetings per week to glaze corporate leadership, they become unhappy.

Look, I’m not saying all M&A is bad. I’ll point to Night Media and AMP. From an outsiders perspective, that felt like a huge win. Almost like they were acquiring executives that new how to run a business as big as Kai Cenat’s by way of the MrBeast experience.

But if you want to see the other side, talk to anyone in the MCN world when they were acquired by their respective media companies.

I went through it twice.

1 + 1 = nobody was happy.

The #1 way to determine whether talent rep M&A will work is to assess whether leadership at the acquiring entity is tactical, process-oriented, and able to foster a strong culture.

So get an expert if you’re on either side of that coin (I recommend my sponsor Rockwater Industries but, you know, I’m biased).

Most representation companies struggle to reach any one of these, nonetheless all three.

FAME & FORTUNE

What creators, brands, governments, and platforms are making waves this week in the name of fortune, fame, and fun?

🧾 I know, it was probably staged, but it was cool that MrBeast sent a tweet saying he had a great Super Bowl commercial idea, Marc Benioff of Salesforce responded, and now it’s going to be a commercial with a $1 million giveaway. We all know Jimmy can move kids, but can he move B2B customers? I’ll be on the edge of my seat (because I plan to win that $1 million).

‼️ Netflix is all over creators, announcing a docu-series with Alix Earle, launching a K-pop band with Alan Chikin Chow, and talking a bit too much about YouTube on a recent earnings call. Is this a turning point or just another part of the ‘2016 trend’?

✍🏽 Substack, the newsletter app that has expanded into all sorts of subscriber-forward media, launched a TV app focused on videos and live streams from their ‘authors’. Let the fight for the living room begin…again!

📱 Public Service Announcement: With everything happening in Minneapolis and how important community journalism through social media has been in fighting misinformation by our own government, I would like to remind everyone that it is legal to record anyone you want in public (even government officials), you don’t not have to let people into your home without a judge-signed warrant, and any social media companies trying to censor your free speech should be reported. Stay safe out there, friends.

JOB BOARD

In honor of TikTok US’s announcement, it’s an all TikTok edition of the job board!

I was formerly the head of gaming creators at Facebook, North America so I can say with confidence: this will be challenging. Being the ‘gaming person’ at a social app not known for gaming is tricky. But it will allow you to be a vertical expert in a category that is undeniably huge.

Come help the LA small business community! TikTok isn’t just lip syncs and floating cats (see above), it’s also a top search engine for Gen Z. WIth that in mind, an MCN agency manager for local services will get to work with exciting local companies to introduce orgs to all TikTok has to offer enterprises.

If I didn’t already run a company, I would be trying to get this role. Working on TikTok Shop partners for Pokemon Cards and Rolexes? Is there anything more fun in all of social media than that? And if you look at the valuation of companies like WhatNot, you’ll see the size of this opportunity.

MEME ZONE

If you can’t be an activist, be a great slacktivist

Thank you for reading! If you enjoyed this edition, give it a share and if you get someone to sign up, I’ll send you my ‘10 Rep-Friendly Ways to Monetize Today!’ deck!

Until next time, protect yo rep.

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