MGX is preparing to take a 15% stake in TikTok’s US operations, as part of a White House–brokered deal that would carve out the app’s American business.
According to Bloomberg, MGX will join Oracle and Silver Lake as co-investors, each taking an equal stake. The structure values TikTok’s US unit at $14 billion, with Chinese parent Bytedance retaining a 19.9% holding. The agreement follows an executive order signed by US president Donald Trump giving the companies 120 days to finalize terms.
MGX is chaired by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security adviser. The firm was created through the merger of Mubadala-backed ventures and Abu Dhabi AI champion G42, which previously held a $100 million stake in Bytedance before exiting last year. Earlier this month, MGX also joined Silver Lake in buying a 51% stake in US chipmaker Altera.
TikTok said it has more than 170 million US users, its largest market within a global audience of 1.6 billion. Still, the deal faces hurdles: Beijing has yet to issue an official response, and approval from Chinese regulators remains uncertain.
At a signing ceremony, Trump described the US version of TikTok as being run by “highly sophisticated investors,” noting he had a “good talk” with Chinese president Xi Jinping. Whether the arrangement will withstand political scrutiny in both Washington and Beijing is an open question, as national security fears over data access continue to dominate the debate.
