Oracle, Silver Lake, and Abu Dhabi's MGX are set to become the primary investors in TikTok's U.S. operations, collectively holding approximately 45% ownership of the entity. In this arrangement, ByteDance, the app's parent company based in China, will retain a minority stake of 19.9%. The remaining 35% will be distributed among other investors and new stakeholders associated with ByteDance.
This investment structure comes in the context of a pressing decision for ByteDance, which has been mandated by U.S. federal law to either divest its American operations or face a shutdown. The law, supported by bipartisan members of Congress, raises national security concerns regarding the app's data practices and content algorithms. In response, President Donald Trump is expected to sign an executive order that will endorse this investment deal, allowing TikTok to continue its operations in the United States.
Previously, Trump had delayed the divestiture deadline until December 16, underscoring the app's perceived importance to his political strategy. Notably, significant backers of ByteDance, including General Atlantic, Susquehanna, and Sequoia, are anticipated to inject equity into the new TikTok U.S. venture.
The arrangement will not include a federal government equity stake, nor will it feature a "golden share" mechanism. Instead, the new TikTok U.S. will have a board predominantly composed of American members, with Oracle tasked with overseeing the app's security operations.
Additionally, there has been speculation regarding the involvement of notable figures such as Rupert Murdoch and Larry Ellison in the deal, further highlighting the high-profile nature of this investment and the ongoing discussions surrounding TikTok's future in the U.S. market.