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TikTok-US deal: Oracle to MGX - List of American investors involved in new agreement
ByteDance has transferred part of TikTok's U.S. operations to a majority-American consortium, including Oracle, Silver Lake, and MGX.
TikTok's Chinese owner, ByteDance, has effectively transferred ownership of a portion of TikTok's US operations to a majority-American consortium of investors.
The framework names Oracle Corporation, Silver Lake Management LLC and Abu Dhabi-based investment firm MGX as primary companies in the new venture. According to TikTok, the list also includes other companies and Michael Dell's personal investment company, the tech billionaire who founded Dell Technologies. ByteDance will retain a non-controlling stake of approximately 19.9 per cent.
The deal ensures that the app will continue operating in the U.S. while addressing years-long U.S. national security concerns about data privacy and potential foreign influence.
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Who are the buyers?
Oracle Corporation
Oracle, the California-based enterprise software giant, is central to the deal and is the security partner responsible for hosting U.S. user data in Oracle's cloud infrastructure, Bloomberg had reported in September.
Oracle will own 15 per cent of TikTok’s U.S. operations.
The co-founder of Oracle, Larry Ellison, has a close relationship with Donald Trump and personally persuaded the president to support his son David Ellison's current effort to acquire Warner Bros. Discovery.
Silver Lake Management LLC
Silver Lake is a leading U.S. private-equity firm focused on technology investments. It is another principal owner in the venture.
Silver Lakes will be responsible for bringing in financial expertise and strategic guidance with a 15 per cent stake alongside Oracle and MGX.
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MGX and other investors
Abu Dhabi-based MGX also holds a 15 per cent share in the U.S. entity. Other portions of ownership are held by affiliates of General Atlantic and Susquehanna (invested in ByteDance).
MGX, too, is a close associate of Trump. They have done business with World Liberty Financial, the cryptocurrency company owned by the Trump family.
A seven-member majority-American board of directors will supervise the venture. However, ByteDance will license the new U.S. company to use TikTok's highly sought-after algorithm.
