Oracle, Silver Lake, and Abu Dhabi’s MGX are set to become significant stakeholders in TikTok’s U.S. operations, as reported by CNBC’s David Faber. This development sees these three entities gaining control over approximately 45% of TikTok USA, with the Chinese parent company ByteDance retaining 19.9%. The remainder will be divided among ByteDance investors and new shareholders.
In a move to secure TikTok’s continuation in the U.S., President Donald Trump is expected to sign an executive order supporting the deal. This decision follows a mandate from federal law, urging ByteDance to divest its American business due to national security concerns raised by members of Congress over its content algorithm.
Initially, the deadline for this divestiture was extended by an executive order signed by Trump, moving it to December 16. The President has been keen to ensure that the app remains operational in the country, often referring to its influential role during his presidential campaign. Notably, Republican billionaire donor Jeff Yass, a significant investor in ByteDance through Susquehanna, owns part of Truth Social, a social media company linked to Trump.
The restructuring plan involves existing backers such as General Atlantic, Susquehanna, and Sequoia, who are likely to provide equity in the new TikTok USA. It is important to highlight that the federal government will not receive any equity or a golden share in TikTok’s American operations, ensuring the company’s management and security oversight remains within the domain of tech giant Oracle.
Additionally, Trump indicated potential participation by influential figures like conservative media mogul Rupert Murdoch, his son Lachlan Murdoch, Oracle Executive Chairman Larry Ellison, and Michael Dell of Dell Technologies in the TikTok deal. This diverse roster of significant investors and stakeholders underlines the strategic importance of maintaining TikTok’s presence in the United States. This collaboration aims to preserve the app’s user experience while addressing the national security concerns that prompted this significant corporate restructuring.