In a move that could reshape the landscape of social media ownership in the United States, MGX, a fund backed by Dubai’s ruling family, has acquired a 15% stake in TikTok’s U.S. business. This strategic investment is part of a broader restructuring effort aimed at increasing American control over the immensely popular video-sharing app, according to a recent report by the Washington Post. The acquisition, led by Sheikh Tahnoon bin Zayed Al Nahyan, adds another layer of intrigue to the complex web of international investments that surround TikTok.
A New Partnership with Oracle
The deal sees MGX joining forces with Oracle, the database giant co-founded by Larry Ellison, to hold a significant portion of TikTok’s U.S. entity. Together, MGX and Oracle will control approximately 45% of the business, a move likely intended to reassure U.S. policymakers concerned about the app’s Chinese ownership and data privacy practices. This partnership aligns with efforts to mitigate national security concerns that have been a focal point of discussions in Washington for years.
With additional U.S. investors on board, American companies are expected to own over 65% of TikTok’s U.S. operations. This shift in ownership structure appears to be a strategic compromise meant to ease tensions in Washington, where former President Donald Trump, and now President Biden, have advocated for tighter scrutiny of TikTok’s ownership and data practices.
ByteDance’s Continued Influence
Despite the significant changes in ownership, ByteDance, TikTok’s Chinese parent company, will remain a key player, retaining a 19.9% stake in the U.S. arm. This arrangement is likely designed to maintain ByteDance’s influence while addressing the political concerns that have surrounded the app’s operations in the United States. The Guardian reports that this balance seeks to appease both U.S. regulators and Chinese stakeholders, creating a more stable environment for TikTok’s continued growth.
MGX’s Strategic Moves in the Financial Sector
MGX’s involvement in the TikTok deal comes on the heels of its significant investment in USD1, a stablecoin launched by Donald Trump’s World Liberty Financial. Earlier this year, the fund purchased $2 billion worth of the stablecoin, which is backed by U.S. Treasuries, cash, and equivalents. USD1 is promoted as a means to provide financial services without relying on traditional banks, and MGX has already utilized the stablecoin in its investment in the cryptocurrency exchange Binance.
This willingness to incorporate innovative financial instruments like stablecoins into large-scale investments underscores MGX’s forward-thinking approach. With the TikTok stake, MGX gains a high-profile foothold in the U.S. social media market, a sector where the platform’s influence over culture and advertising continues to expand exponentially.
Balancing Interests and Addressing Concerns
The MGX-TikTok deal reflects a delicate balancing act between international interests and domestic regulatory concerns. While the investment represents a significant win for MGX, giving it access to one of the fastest-growing social media platforms in the world, it also addresses key issues that have been at the forefront of U.S. policymaking. By increasing American control over TikTok’s U.S. operations, the deal aims to alleviate fears about data security and foreign influence.
Critics, however, might argue that ByteDance’s continued involvement poses ongoing risks. Despite the reduced stake, the Chinese company’s influence remains substantial, and questions about data privacy and security are likely to persist. For proponents, the deal represents a pragmatic solution that allows TikTok to continue operating in the U.S. while addressing legitimate concerns about its ownership structure.
The Future of TikTok in the U.S.
As TikTok continues to grow its user base and expand its influence, the new ownership structure could play a critical role in shaping its future in the U.S. market. The partnership with Oracle and MGX not only provides the app with financial stability but also aligns it with powerful stakeholders who can help navigate the complex regulatory landscape.
In the ever-evolving world of social media, the MGX-TikTok deal sets a precedent for how international investments can be structured to address national security concerns while fostering innovation and growth. As other tech companies watch closely, this move could signal a shift in how foreign investments in U.S. tech are approached, balancing global collaboration with domestic interests.
In conclusion, MGX’s acquisition of a 15% stake in TikTok’s U.S. business underscores the intricate interplay between international finance, technology, and politics. While the deal appears to offer a solution to ongoing regulatory challenges, its long-term implications for TikTok, its users, and the broader tech industry remain to be seen. As the dust settles, all eyes will be on how this reshaped ownership structure impacts the platform’s trajectory in the years to come.
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
