MGX, a fund backed by Dubai’s ruling family, is making waves in the American tech scene by securing a 15% stake in TikTok’s U.S. business. This move is part of a larger restructuring effort aimed at increasing American control over the wildly popular video app, according to a report by the Washington Post on Friday.
Leading this investment is Sheikh Tahnoon bin Zayed Al Nahyan, whose backing brings MGX into a partnership alongside Oracle—the well-known database giant co-founded by Larry Ellison. Together, MGX and Oracle will hold roughly 45% of TikTok’s U.S. entity, marking a significant shift in the app’s ownership structure. Adding further weight to this shift, other American investors are expected to push the total U.S. ownership stake to over 65%, reinforcing TikTok’s roots in the American market.
While TikTok’s Chinese parent company, ByteDance, remains a key player, it will now hold a reduced but notable 19.9% stake in the U.S. business. According to the Guardian, this move seems purposefully designed to address ongoing concerns in Washington about the app’s ownership and the handling of user data—issues that have drawn significant attention from political leaders, including former President Trump.
The involvement of MGX adds an intriguing layer to the story. Earlier this year, MGX purchased $2 billion worth of USD1, a stablecoin launched by Donald Trump’s World Liberty Financial. This digital currency is backed by U.S. Treasuries, cash, and equivalents and is promoted as a way to give people access to financial services without relying on traditional banks. MGX has already started deploying USD1 in major deals, such as its investment in the crypto exchange Binance, showcasing its readiness to engage in large-scale financial transactions using this stablecoin.
For MGX, the investment in TikTok is more than just a financial move; it offers a strategic foothold in the U.S. social media landscape. As TikTok’s influence continues to grow—shaping popular culture and becoming a powerhouse in digital advertising—the fund’s stake positions it at the heart of this dynamic and rapidly evolving market.
