Oracle and Silver Lake Reportedly Set to Own 50% of TikTok US

• A consortium led by Oracle (ORCL), Silver Lake, and MGX is acquiring a 45% stake in TikTok’s U.S. operations as part of a broader investor group targeting 50% control, while existing ByteDance shareholders retain 30%.
• ByteDance will hold less than 20% ownership to comply with a 2024 U.S. law requiring divestiture by January 2025, with the new entity’s board consisting of seven members, one appointed by ByteDance and six Americans.
• The deal, expected to be approved by President Trump on Thursday, addresses national security concerns and could evolve amid high investor interest, highlighting geopolitical influences on tech ownership.

A consortium comprising Oracle (ORCL), Silver Lake, and Abu Dhabi-based MGX is set to acquire a significant stake in TikTok’s U.S. operations, positioning them as the primary investors with a combined 45% ownership, according to Reuters. This move addresses national security concerns that have long surrounded the app’s Chinese parent company, ByteDance, amid fears of data access by foreign entities. The broader investor group, which includes these three, aims for roughly 50% control, though intense interest from potential participants could adjust this figure. Existing ByteDance shareholders, such as Susquehanna International Group, General Atlantic, and KKR (KKR), are expected to retain about 30% in the new entity, ensuring continuity while shifting majority influence away from ByteDance.

Under the agreement, ByteDance will maintain less than 20% ownership to align with a 2024 U.S. law mandating the sale of TikTok’s American assets by January 2025 or face a shutdown. This threshold reflects ongoing regulatory scrutiny, including reviews by the Committee on Foreign Investment in the United States, which has emphasized protecting user data and preventing potential espionage risks associated with apps linked to adversarial nations. Governance of the new TikTok U.S. will feature a seven-member board, with ByteDance appointing one director and Americans filling the remaining six seats, reinforcing domestic oversight.

MGX, an artificial intelligence-focused investment firm partnered with Silver Lake, operates under the oversight of Sheikh Tahnoon bin Zayed Al Nahyan, who serves as the United Arab Emirates’ national security adviser and is the brother of President Mohamed bin Zayed Al Nahyan. This involvement highlights the growing role of Middle Eastern sovereign wealth in global tech deals, often leveraging expertise in AI to enhance portfolio companies’ capabilities, such as improving content moderation algorithms or expanding data analytics. The deal, anticipated to receive approval from U.S. President Donald Trump later on Thursday, resolves months of uncertainty by fully divesting TikTok’s U.S. operations from ByteDance.

Representatives from Oracle and Silver Lake have not yet responded to inquiries, underscoring the sensitivity of the negotiations. A source close to the matter indicated to Reuters that the structure could evolve given the high demand, potentially attracting additional capital to bolster TikTok’s position in the competitive social media landscape, where it competes with platforms like Instagram and YouTube for advertising revenue and user engagement. This transaction not only secures TikTok’s future in the U.S. market but also exemplifies how geopolitical tensions can reshape corporate ownership in the digital economy.

WallStreetPit does not provide investment advice. All rights reserved.

• Bulenox: Get 45% to 91% OFF ... Use Discount Code: UNO
• Risk Our Money Not Yours | Get 50% to 90% OFF ... Use Discount Code: MMBVBKSM