MGX, the state-backed Emirati technology investment company, is reportedly preparing to take a 15 percent stake in the US operations of TikTok. The move is part of a landmark deal brokered by the White House that values the social media giant’s US unit at $14 billion.
A Strategic US Partnership
Under the proposed structure, MGX will join Oracle Corp. and Silver Lake as co-investors, with each entity taking an equal 15 percent stake in the restructured business. TikTok’s Chinese parent company, Bytedance, will retain a 19.9 percent stake. The agreement follows an executive order signed by US President Donald Trump, giving the companies 120 days to finalize the terms. This deal structure aims to address the national security concerns that had previously surrounded the app’s operations in the United States.
UAE’s Growing Global Tech Footprint
The investment marks another significant move by MGX, which is chaired by UAE National Security Adviser Sheikh Tahnoon bin Zayed Al Nahyan, solidifying the UAE’s position as a major player in the global technology landscape. This deal follows other high-profile investments, including MGX’s recent participation in a Silver Lake-led acquisition of a majority stake in US chipmaker Altera. One of MGX’s founding companies, G42, had previously held a stake in Bytedance but divested it amidst efforts to secure access to US semiconductor technology.
Resolving Geopolitical Tech Tensions
The future of TikTok’s US operations, which serve over 170 million American users, was previously in doubt. A law signed by the former US administration sought to force a sale or ban of the app over concerns that user data could be shared with the Chinese government. While the new agreement provides a path forward, it is reportedly still pending final approval from Beijing.
About MGX
MGX is an AI-focused investment company based in Abu Dhabi. Launched by founding partners Mubadala and G42, its strategy is to accelerate the development and adoption of artificial intelligence and advanced technologies through global partnerships. The firm aims to deploy capital to enhance the UAE’s position as a global technology leader.
Source: AGBI
