TikTok Resolves Ban Threat with Investment from Abu Dhabi’s MGX Fund

TikTok announced Thursday the successful finalization of an ownership restructuring that includes significant investment from Abu Dhabi’s MGX fund, establishing a majority American-owned entity with international investment participation. The deal allows the platform to avoid a federal ban while bringing together US and UAE capital.
The completed transaction reduces ByteDance’s ownership to a 19.9% minority stake, while American-led investors collectively control 80.1% of the new US-based company. Three primary investors share equal ownership: Oracle at 15%, Silver Lake at 15%, and MGX at 15%. MGX, an investment fund based in Abu Dhabi, represents significant Middle Eastern capital participating in the American-majority structure alongside traditional US investors. Michael Dell’s investment firm also contributes.
This settlement stems from congressional legislation passed in 2024 that required TikTok to divest from Chinese ownership or face prohibition from American digital platforms. The law reflected concern about national security vulnerabilities, and the inclusion of MGX demonstrates how the legislation focused on shifting control away from Chinese ownership while allowing participation from other international investors within an American-majority framework.
The restructured American TikTok will be led by Adam Presser as CEO, utilizing his institutional knowledge from previous senior leadership roles with the company. Strategic oversight will be provided by a seven-person board of directors, deliberately constructed with an American majority despite the international investor participation, and filled with cybersecurity and national security experts. Current TikTok CEO Shou Chew will join the board.
The company has outlined specific protective measures for American users, including comprehensive data protection systems, algorithm security protocols, enhanced content moderation capabilities, and software integrity assurances. The platform’s content recommendation algorithm will undergo complete retraining based exclusively on US user data, with rigorous testing and continuous updates to ensure independence. Both US and Chinese government officials have approved the arrangement, with President Trump publicly expressing thanks to Chinese President Xi Jinping for his role in facilitating the deal that brings together American, Middle Eastern, and retained Chinese investment.