Key points
- Oracle, Silver Lake, and Abu Dhabi’s Mubadala Investment Company (MGX) will be the main investors in TikTok’s US business.
- The three entities will collectively own approximately 45% of TikTok USA.
- ByteDance, TikTok’s parent company, will retain a 19.9% stake. Existing ByteDance investors will hold the remaining 35%.
- President Trump signed an executive order approving the deal, averting a US shutdown of the platform.
US President Donald Trump has signed an executive order endorsing a deal that secures the future of TikTok’s US operations, averting a potential ban. The agreement involves a consortium of investors led by Oracle, Silver Lake, and Abu Dhabi’s Mubadala Investment Company (MGX), who will collectively acquire a significant stake in the US arm of the popular social media platform. This multi-billion dollar investment will allow TikTok to continue operating within the United States.
Under the terms of the deal, Oracle, Silver Lake, and MGX will hold roughly 45% ownership of TikTok USA. ByteDance, TikTok’s Chinese parent company, will retain a 19.9% stake, while existing ByteDance investors, including General Atlantic, Susquehanna, and Sequoia, will collectively own the remaining 35%.
This structured arrangement addresses national security concerns raised by US lawmakers regarding the potential influence of a Chinese-owned company over a vast amount of American user data.
The agreement comes after months of intense negotiations and a looming deadline imposed by the US government. The original ultimatum required ByteDance to divest its US operations or face a complete ban. President Trump initially set a deadline for this divestiture but later extended it to December 16th.
The president’s repeated affirmation of TikTok’s importance, notably referencing its role in his election victory, underscores the political significance of this resolution. The involvement of prominent investors like Jeff Yass, a major ByteDance investor with ties to both the Republican party and Trump’s own social media venture, Truth Social, further highlights this complex interplay of business and politics.
This deal marks a significant development in the ongoing debate surrounding the role of foreign-owned technology companies in the United States and sets a precedent for how future similar situations might be handled.
The agreement allows TikTok to remain operational while mitigating concerns regarding data security and national security. The carefully crafted structure of the deal aims to balance both commercial interests and geopolitical considerations.
