Abu Dhabi’s newly formed technology investment firm, MGX, has secured a significant role in a landmark deal for the U.S. operations of social media giant TikTok. The UAE-based entity will join a majority-American joint venture, including technology corporation Oracle and private equity firm Silver Lake, to acquire the platform.
The agreement establishes a new, independent U.S. entity to oversee TikTok’s activities in the country, addressing long-standing concerns over data security and content moderation.
The Structure of the Deal
Under the terms of the acquisition, MGX, Oracle, and Silver Lake will each acquire a 15% ownership stake in the new TikTok U.S. entity.
The remaining ownership will be divided between ByteDance, TikTok’s parent company, which will retain a 19.9% minority stake, and affiliates of existing ByteDance investors, which will hold 30.1%. The deal is reportedly set to close by January 22, 2026.
A New Era for TikTok in the U.S.
Upon closing, the U.S. joint venture will operate as a fully independent company governed by a new seven-member, majority-American board of directors.
This new entity will assume complete control over data protection, content moderation, and algorithm security for all U.S. users, effectively creating a firewalled operation separate from ByteDance’s global business.
The Algorithm and Technology Transfer
A key component of the deal involves ByteDance licensing its highly effective AI recommendation technology to the newly formed U.S. company. The U.S. entity will then utilize this algorithm to build a new system running on domestic data secured by Oracle.
This arrangement allows the U.S. platform to maintain its user experience while ensuring that its underlying technology and data are managed and protected within the United States. While Chinese regulators have not yet publicly approved the transaction, the deal is seen as a major step toward resolving a persistent issue in U.S.-China relations.
About MGX
MGX is an AI and advanced technology investment company based in Abu Dhabi, UAE. Launched to accelerate the development and adoption of AI and advanced technologies, it builds on Abu Dhabi’s existing investments and partnerships to establish the emirate as a global technology hub.
Source: Waya
