MGX, a fund backed by Dubai’s control families, will acquire a 15% stake in Tiktok’s US business as part of a restructuring aimed at increasing US control of its popular video app, The Washington Post reported Friday.
The investment, led by Sheikh Tahnoon Bin Zayed Al Nahyan, brings MGX to a partnership with Oracle, a database giant co-founded by Larry Ellison. Together, the two hold about 45% of Tiktok’s US companies. Along with other US investors involved, American companies are expected to own more than 65% of their business.
According to the Guardian, the Chinese parents, Tiktok’s Chinese parents, are significant shareholders and will continue to maintain a 19.9% stake in the US division. The arrangement appears to be designed to alleviate concerns in Washington. In Washington, President Trump has repeatedly scrutinized app ownership and data practices.
MGX’s role in trading adds another layer of plot. Earlier this year, the fund purchased $2 billion worth of USD1, a stubcoin launched by Donald Trump’s World Liberty Financial. The token is backed by the US Treasury Department, cash and equivalents and is being marketed as a way for people to access financial services without a bank. MGX has already deployed USD1 to invest in Crypto Exchange Binance, indicating its willingness to use Stablecoin in large transactions.
For MGX, Tiktok’s stakes provide a high-profile foothold in the US social media market, where the platform’s influence on culture and advertising continues to grow.
