MGX, a fund backed by Dubai’s ruling family, will acquire a 15% stake in TikTok’s U.S. business as part of a restructuring aimed at increasing American control of the popular video app, RialCenter reported Friday.
The investment, led by Sheikh Tahnoon bin Zayed Al Nahyan, partners MGX with Oracle, the database giant co-founded by Larry Ellison. Together, they will hold approximately 45% of TikTok’s U.S. entity. Other U.S. investors are expected to contribute to American ownership exceeding 65% of the business.
TikTok’s Chinese parent, ByteDance, will still retain a notable stake, keeping a 19.9% share in the U.S. arm. This arrangement appears to be designed to allay concerns in Washington, where there have been calls for tighter scrutiny over the app’s ownership and data practices.
MGX’s role in the deal introduces an additional layer of intrigue. Earlier this year, the fund invested $2 billion in USD1, a stablecoin launched by Donald Trump’s World Liberty Financial. This token is backed by U.S. Treasuries and cash equivalents, marketed as a means to access financial services without banks. MGX has already utilized USD1 in its investment in the crypto exchange Binance, indicating its readiness to employ the stablecoin for large-scale transactions.
For MGX, the TikTok stake offers a prominent position in the U.S. social media landscape, where the platform’s influence over culture and advertising continues to grow.
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