A consortium of investors, led by Oracle and private-equity firm Silver Lake, is set to acquire approximately a 50% stake in TikTok’s U.S. operations, according to a source familiar with the deal. The move marks a significant step in the long-running effort to separate the popular social media app from its Chinese parent, ByteDance, amid ongoing regulatory scrutiny in the United States.
Under the proposed arrangement, existing shareholders in ByteDance, including Susquehanna International Group, General Atlantic, and KKR, would retain roughly a 30% stake in TikTok U.S. The source noted that intense investor interest in the platform means the exact 50% allocation among the consortium could still shift before the deal is finalized. Neither Oracle nor Silver Lake immediately responded to requests for comment.
The deal is expected to receive formal approval from U.S. President Donald Trump later on Thursday, effectively divesting TikTok’s American operations from ByteDance and ending months of uncertainty about the app’s future in the U.S. As part of the agreement, ByteDance would be allowed to appoint one of seven board members for the newly formed U.S. entity, while Americans would fill the remaining six seats, according to a senior White House official. This structure ensures compliance with a 2024 U.S. law that would have forced a shutdown of TikTok’s U.S. operations by January 2025 if its American assets remained under Chinese ownership. Under the arrangement, ByteDance’s holding in TikTok U.S. would fall below 20%.
Earlier reports from CNBC indicated that Abu Dhabi-based artificial intelligence investment firm MGX would also be a key investor alongside Oracle and Silver Lake, together controlling roughly 45% of the U.S. operation. MGX is closely tied to Silver Lake and operates under the leadership of Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security adviser and brother of President Mohamed bin Zayed Al Nahyan. MGX did not immediately comment on the reports.
This transaction represents a landmark reshaping of TikTok’s corporate structure in the U.S., bringing together American tech and investment firms with global partners to navigate complex regulatory, national security, and operational considerations, while ensuring that the app can continue serving its massive U.S. user base without interruption.
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