A landmark deal approved by former President Donald Trump will see the Abu Dhabi royal family take a 15 percent stake in TikTok’s U.S. operations, as part of a broader restructuring aimed at preserving the platform’s presence in America.
Under the arrangement, MGX, a fund chaired by Sheikh Tahnoun bin Zayed Al Nahyan, will secure a board seat in TikTok US following the spin-out. Alongside MGX, Oracle and private equity firm Silver Lake will join the new ownership structure, with the three parties expected to control roughly 45 percent of the restructured company.
The overall plan aims to ensure majority U.S. control, satisfying legal and political demands in Washington. American investors—including tech leaders and media entities—will hold the majority stake, while TikTok’s Chinese parent, ByteDance, will retain a minority holding of 19.9 percent.
Trump signed an executive order late Thursday authorizing the deal and providing a 120-day window to finalize its terms. In his remarks, he stated that the new entity will be “majority owned and controlled by United States persons,” positioning the move as a safeguard for American data privacy and national security.
Vice President JD Vance weighed in, calling the deal “essential” to preserving TikTok’s operations while curbing foreign influence. He confirmed the $14 billion valuation for the U.S. segment and acknowledged resistance from Chinese authorities, though Trump said he had discussed the plan with President Xi Jinping, and the Chinese side was cooperative.
In addition to user data, the deal mandates that algorithm control, content moderation, and code oversight fall under American jurisdiction. The new board is expected to have six U.S.-appointed directors and one from ByteDance.
While the deal has received praise from some quarters for providing a path forward (and avoiding a sweeping ban), critics question whether it truly severs Chinese influence or creates vulnerabilities to political abuse. They note a delicate balance: making TikTok “American” in control while preserving its global reach and technological continuity.
With the clock ticking on the 120-day deadline, markets and regulators will watch closely whether the deal can navigate legal, diplomatic, and technical hurdles—or whether it becomes another flashpoint in U.S.–China tech rivalry.