Abu Dhabi's MGX to Acquire 15% Stake in TikTok US Following Trump-Approved Deal

Abu Dhabi-based investment firm MGX, chaired by Sheikh Tahnoon bin Zayed Al Nahyan, is set to acquire a 15% stake in TikTok's U.S. operations, following President Donald Trump's approval of a deal valuing the company at $14 billion. The agreement, signed on September 25, 2025, aims to address national security concerns by transferring majority ownership of TikTok U.S. to American and allied investors.

Under the terms of the deal, a consortium including Oracle, private equity firm Silver Lake, and MGX will collectively hold approximately 45% of TikTok U.S. Existing shareholders in ByteDance, TikTok's Chinese parent company, such as Susquehanna International Group, General Atlantic, and KKR, are expected to retain about a 30% stake. ByteDance itself will hold less than 20% ownership to comply with U.S. legislation mandating divestiture from Chinese ownership.

The restructuring includes the formation of a new board for TikTok U.S., comprising six American-appointed members and one selected by ByteDance. President Trump emphasized that the new entity will be "majority-owned and controlled by United States persons and will no longer be controlled by any foreign adversary."

Vice President JD Vance highlighted the deal's focus on data privacy, stating that it ensures Americans can use TikTok "with more confidence than in the past" because their data will be secure and not used as a propaganda tool.

The agreement also involves retraining TikTok's recommendation algorithm under the supervision of security partners, with full operational control handed to the new U.S. entity. China's President Xi Jinping reportedly approved the plan after discussions with President Trump.

The $14 billion valuation of TikTok U.S. is significantly lower than ByteDance's overall estimated valuation of approximately $330 billion. By comparison, Meta Platforms Inc., which owns Facebook and Instagram, is valued at $1.8 trillion.

The future of TikTok U.S. had been uncertain since April 2024, when Congress passed a law mandating ByteDance sell its U.S. operations due to privacy and national security concerns. President Trump extended deadlines to broker a deal, culminating in the current agreement.