MGX, a fund supported by Dubai’s reigning family, will take a 15% share in Tikkok’s US business as part of a restructuring intended to increase the US control of the popular video app, the Washington Post reported Friday.
The investment, led by Sheikh Tahnoon Bin Zayed Al Nahyan, brings MGX into a partnership with Oracle, the database giant with founded by Larry Ellison. Together, the two will have approx. 45% of Tiktok US device. With other US investors involved, US companies are expected to own more than 65% of the business.
Tikkok’s Chinese parent, byte dance, will remain a significant shareholder and hold a 19.9% share in the US arm, according to The Guardian. This scheme seems designed to facilitate the worries in Washington, where President Trump has repeatedly pressed for tighter control of the app’s ownership and data practice.
MGX’s role in the agreement adds another layer of intrigue. Earlier this year, the fund bought $ 2 billion value of USD 1, a stableecoin launched by Donald Trump’s World Liberty Financial. The token is supported by US Treasury, cash and equivalents and is beaten as a way for people to access financial services without banks. MGX has already deployed USD in its investment in crypto exchange binance, signaling its willingness to use stablecoin in large appointments.
For MGX, Tiktok Stake gives a high profile foothold in the US market on social media, where the platform’s influence on culture and advertising continues to expand.
