MGX, an investment fund supported by Dubai's ruling family, has secured a 15% stake in TikTok's U.S. operations. This move is part of a strategic restructuring aimed at bolstering American oversight of the widely-used video application, as reported by the Washington Post.
Sheikh Tahnoon bin Zayed Al Nahyan is leading this investment, forming a partnership with database leader Oracle, co-founded by Larry Ellison. The collaboration will result in MGX and Oracle collectively holding approximately 45% of TikTok's U.S. division. With additional U.S. investors participating, American entities are projected to control over 65% of the business.
ByteDance, TikTok's Chinese parent company, will maintain a substantial shareholding with a 19.9% stake in the U.S. subsidiary, according to the Guardian. This structure seems intended to address regulatory concerns in Washington, where former President Trump has consistently advocated for stricter examination of the app's ownership and data handling procedures.
MGX's involvement introduces additional complexity. Earlier this year, the fund purchased $2 billion of USD1, a stablecoin introduced by Donald Trump's World Liberty Financial. This token is supported by U.S. Treasuries, cash, and equivalent assets, and is marketed as a banking alternative for financial services. MGX has already utilized USD1 for an investment in the cryptocurrency exchange Binance, demonstrating its readiness to employ the stablecoin in significant transactions.
For MGX, this investment in TikTok establishes a prominent position in the competitive U.S. social media landscape, where the platform's impact on culture and advertising continues to grow significantly.