Abu Dhabi’s MGX to take 15% stake in TikTok US
- TikTok US valued at $14bn
- Bytedance to keep 20%
- Oracle and Silver Lane take 15%
Abu Dhabi investment fund MGX will take part ownership of TikTok’s US business, as a years-long struggle over the tech company’s future in the US draws to a close.
TikTok’s Chinese owner Bytedance has signed an agreement with US and global investors including MGX to give up control of TikTok in the US, according to a memo circulated by Bytedance chief executive Shou Zi Chew and reported by Axios.
Under the agreement, ByteDance will retain just short of 20 percent of the business, while MGX, US tech company Oracle and US private equity company Silver Lake will each get 15 percent of a new joint venture.
The remaining 30 percent will be held by affiliates of existing ByteDance investors.
It is not clear who will hold the remaining 5 percent.
No official confirmation has been made of the value of the deal, but a source told Axios that the deal valued TikTok US at around $14 billion.
Axios said the US entity will be called TikTok USDS Joint Venture LLC.
The memo said that the new TikTok joint venture would be “majority owned by American investors, governed by a new seven-member majority-American board of directors, and subject to terms that protect Americans’ data and US national security”.
MGX was founded in 2024 by Abu Dhabi AI company G42 and sovereign wealth fund Mubadala to invest in AI and other emerging technologies.
In April 2024, during the Biden administration, the US Congress passed a law to ban TikTok over national security concerns, unless it was sold.
Further reading:
- US-China TikTok deal risks splitting global app profile
- PIF’s Savvy in talks to buy TikTok owner’s game studio
- Lunate in talks to invest $1bn in AI specialist MGX
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