Who Owns TikTok in the US Now? Implications for Investors and Entrepreneurs in the Social Media Landscape
ByteDance Spins Off American TikTok Venture Amid National Security Concerns
ByteDance, the Chinese parent company of TikTok, has officially launched an American venture to manage the popular video app in the United States. This move, announced on Thursday, aims to comply with a 2024 federal law designed to separate TikTok from ByteDance, addressing ongoing national security concerns regarding the app’s ties to Beijing.
Under this new arrangement, American investors will hold approximately 80% of the venture, while ByteDance retains a 19.9% stake. The investors will license TikTok’s powerful recommendation algorithm and gain authority over content moderation.
Key Stakeholders in US TikTok
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Oracle
Founded in the 1970s, Oracle is a leading cloud computing and database software company. It has a 15% share in the new American entity, tying it for the largest stake among new investors. Oracle has been associated with TikTok for several years, providing data storage solutions to reassure the US government regarding data security. Kenneth Glueck, Oracle’s Executive Vice President, will join the new venture’s board. -
MGX
Established in 2024, MGX is an Emirati investment firm focusing on technology and artificial intelligence. With a 15% stake in the American TikTok entity, MGX was founded by Abu Dhabi’s sovereign wealth fund, Mubadala, and Emirati AI firm G42. The firm’s Chief Strategy and Safety Officer, David Scott, will also sit on the board. MGX has been involved in deals linked to former President Donald Trump and has partnerships with major companies like Microsoft and BlackRock. -
Silver Lake
Based in Menlo Park, California, Silver Lake specializes in technology investments and holds a 15% stake in TikTok’s new American venture. Co-CEOs Egon Durban and Greg Mondre will guide the company’s strategic direction, and Durban will be on the new entity’s board. Silver Lake has collaborated with both MGX and Oracle in various ventures.
ByteDance’s Role
Founded in 2012, ByteDance is valued at approximately $480 billion and heavily invests in AI technologies. The company will maintain a 19.9% stake in the new TikTok venture, the maximum permissible under the recent federal law. CEO Liang Rubo succeeded co-founder Zhang Yiming, who continues to focus on strategy.
Other Investors
Additional investors include the personal investment entity of Michael Dell, founder of Dell Technologies, and several investment firms such as General Atlantic and Susquehanna, which previously invested in ByteDance. TikTok also acknowledged contributions from firms like Alpha Wave Partners and Revolution.
This grassroots restructuring aims to alleviate concerns over data security and ensure a more stable operational environment for the app in the American market.
Special Analysis by Omanet | Navigate Oman’s Market
The spin-out of TikTok’s American venture signals a significant shift in the tech landscape, emphasizing national security compliance and data sovereignty. For businesses in Oman, this presents opportunities in technology investments and partnerships as global players seek stable environments to manage data and operate securely. Smart investors should consider the potential risks associated with regulatory frameworks and the shifting dynamics of tech ownership, particularly in areas tied to data management and AI.
