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What To Know
- TikTok has signed a binding agreement to sell its US business to a group of American and UAE-backed investors, a move that secures the platform’s future in the country after months of political and regulatory uncertainty.
- According to the memo, the US venture will be built on TikTok’s existing US Data Security framework and will have full authority over data protection, algorithm security, content moderation and software assurance within the country.
- A consortium of new investors, including Oracle, Silver Lake and MGX, will collectively hold 50 per cent of the US entity, with each of the three firms taking a 15 per cent stake.
TikTok has signed a binding agreement to sell its US business to a group of American and UAE-backed investors, a move that secures the platform’s future in the country after months of political and regulatory uncertainty. The deal brings together Abu Dhabi’s MGX, US technology giant Oracle, and private equity firm Silver Lake, according to reports citing an internal company memo.
The transaction is expected to close on January 22, TikTok chief executive Shou Zi Chew said in the memo. Under the new structure, a freshly created TikTok US joint venture will be established, designed to operate independently while meeting strict US data and national security requirements.
The ownership split shows a major shift in control. A consortium of new investors, including Oracle, Silver Lake and MGX, will collectively hold 50 per cent of the US entity, with each of the three firms taking a 15 per cent stake. Affiliates of existing ByteDance investors will own 30.1 per cent, while ByteDance itself will retain a 19.9 per cent minority stake.
MGX, which is backed by the Abu Dhabi government, is a sovereign AI investment vehicle focused on advanced technologies and digital infrastructure, marking a high-profile UAE entry into one of the world’s most influential social media platforms.
According to the memo, the US venture will be built on TikTok’s existing US Data Security framework and will have full authority over data protection, algorithm security, content moderation and software assurance within the country. US user data will be stored locally through Oracle-managed systems, while TikTok’s algorithm will be retrained using US user data to prevent external influence.
Governance will also change significantly. The new entity will be overseen by a seven-member board with a majority of American directors, reinforcing compliance with US national security concerns.
The deal follows legislation passed by the US Congress last year requiring TikTok’s sale to a US-linked entity over fears related to data access by China-owned ByteDance. With the agreement now signed, the long-running question over TikTok’s ownership in the US appears close to resolution.
