Image Source: Unsplash
 

Oracle, Silver Lake, and Abu Dhabi’s MGX will emerge as the lead investors in TikTok’s US operations under a proposed restructuring of the short-video app, reported CNBC, citing sources.

The deal is designed to address longstanding national security concerns raised by US lawmakers while ensuring the platform’s continued presence in the country.

Structure of the deal
 

According to the report, the three anchor investors—Oracle, Silver Lake, and MGX—will control roughly 45% of TikTok USA.

ByteDance, TikTok’s Beijing-based parent company, will retain a 19.9% stake, while the remaining 35% will be held by ByteDance’s existing investors and new stakeholders.

President Donald Trump is expected to sign an executive order on Thursday backing the deal, which would secure TikTok’s ability to operate in the US.

This follows bipartisan legislation that required ByteDance to divest its American business or face a nationwide ban.

The law, passed earlier this year, reflected growing concerns about the influence of TikTok’s recommendation algorithm and its potential ties to Chinese authorities.

By creating a new US-led entity, the parties aim to alleviate those concerns while retaining TikTok’s core product and user base.

Political backdrop and key players
 

The latest announcement comes amid an extended timeline for divestiture.

Trump signed an executive order last week delaying the deadline until December 16, providing additional time to finalize a structure acceptable to regulators and investors.

The president has also publicly underscored TikTok’s importance, calling it central to his political success in the November election.

His support has been linked in part to the involvement of billionaire Republican donor Jeff Yass, whose firm Susquehanna is a major investor in ByteDance and also holds a stake in Trump’s social media platform, Truth Social.

Other ByteDance backers—including General Atlantic, Susquehanna, and Sequoia—are also expected to contribute equity to the new TikTok USA entity.

The ownership structure does not include any direct federal government stake or a so-called “golden share,” which had been floated as a possible option earlier this year, according to CNBC.

Governance and oversight
 

The restructured TikTok USA will feature a board of directors composed primarily of American members, according to sources in the report.

Oracle will assume a central role in overseeing TikTok’s security operations, a key component of the deal aimed at addressing lawmakers’ concerns about data protection and algorithmic transparency.

Trump has also suggested that influential business leaders could be directly or indirectly involved in the venture.

Rupert Murdoch and his son Lachlan Murdoch, along with Oracle Executive Chairman Larry Ellison and Dell Technologies CEO Michael Dell, were among the names he publicly floated as potential participants in the governance of TikTok’s US entity.

The agreement marks a significant development in the ongoing negotiations over TikTok’s future in the US, balancing political demands with corporate investment.

If finalized, the deal could bring clarity to TikTok’s status in one of its largest markets while reshaping its ownership structure to reflect US oversight.

More By This Author: