Abu Dhabi’s MGX among top investors in new U.S. TikTok

Emirati investment fund MGX has emerged as a central player in the deal struck with China’s ByteDance on Thursday to create a U.S. TikTok, joining Oracle and private equity firm Silver Lake in the venture that has an estimated value of $14 billion.

The arrangement, signed off by both U.S. and Chinese authorities, will transfer control of TikTok’s U.S. operations into a new entity designed to address long-running national security concerns over data and algorithm access. 

ByteDance will retain a minority stake of just under 20%, while American and global investors hold the balance, with a majority-American board overseeing data protection, content moderation and cybersecurity. MGX, Larry Ellison’s Oracle and Silicon Valley-based Silver Lake, which has backing from Abu Dhabi’s Mubadala sovereign wealth fund, will each hold a 15% stake.

MGX, an AI-focused fund that is chaired by UAE National Security Advisor Sheikh Tahnoon bin Zayed and backed by Abu Dhabi sovereign fund Mubadala, has been investing heavily in U.S. tech companies, including Elon Musk’s xAI.

The deal is intended to bring an end to years of political and legal battles, including threats of a nationwide ban that had loomed under U.S. law and led to a temporary shutdown of the app.TikTok said American users can continue to use the platform uninterrupted as the new company begins operations under the revamped ownership structure.