MGX Acquires 15% Stake in TikTok’s U.S. Business

MGX, a fund associated with Dubai’s ruling family, is set to acquire a 15% stake in TikTok’s U.S. operation as part of a restructuring aimed at boosting American control of the popular video application, according to a report by the Washington Post on Friday.

Investment Details and Partnerships

The investment, spearheaded by Sheikh Tahnoon bin Zayed Al Nahyan, positions MGX in partnership with Oracle, the database powerhouse co-founded by Larry Ellison. Together, these two entities will possess approximately 45% of TikTok’s U.S. business. With the participation of other American investors, U.S. firms are anticipated to own over 65% of the company.

Meanwhile, TikTok’s Chinese parent company, ByteDance, will retain a notable stake, holding 19.9% in the U.S. division, as reported by the Guardian. This arrangement appears to be aimed at alleviating concerns within Washington, where President Trump has consistently advocated for rigorous oversight of the app’s ownership and data management practices.

Intrigue Surrounding MGX’s Involvement

MGX’s involvement in this transaction adds another layer of intrigue. Earlier this year, the fund made headlines by purchasing $2 billion worth of USD1, a stablecoin introduced by Donald Trump’s World Liberty Financial. This token is underpinned by U.S. Treasuries, cash, and equivalents, and is marketed as a means for individuals to access financial services independently of banks. MGX has already utilized USD1 in its investment with crypto exchange Binance, highlighting its readiness to leverage the stablecoin for substantial transactions.

For MGX, securing a stake in TikTok presents a prominent entry into the U.S. social media landscape, where the platform’s cultural and advertising impact continues to grow significantly.]