Oracle, Silver Lake, and MGX to own ~45% of TikTok U.S. - CNBC

President Trump signed an Executive Order that formalizes a transaction restructuring TikTok's U.S. operations, allowing Oracle, Silver Lake, and MGX to acquire a combined 45% stake in the company.

ByteDance, TikTok's parent company, will retain a 19.9% stake, while additional investments will come from supporters like General Atlantic and Sequoia, with a total of 35% allocated to new and existing investors.

The agreement has received approval from China and ensures that TikTok remains operational for its 170 million U.S. users, amidst ongoing national security concerns that have prompted calls for the app to transition to U.S. ownership.

Trump's favorable stance toward TikTok has been noted since the election, indicating the platform's potential impact on his campaign, while he has issued multiple executive orders related to the company's ownership since taking office.

Recommendation Rating: Significant Developments in TikTok's Business Structure

In a recent update at 4:45 PM ET, it has been announced that President Trump has officially signed an Executive Order concerning the TikTok transaction.

According to a report by CNBC, major control over TikTok's U.S. operations will be held by technology giant Oracle, private equity firm Silver Lake, and Abu Dhabi-based fund manager MGX. This consortium is set to acquire a combined 45% ownership stake in TikTok's U.S. division.

The Beijing-based parent company, ByteDance, is expected to retain a 19.9% stake, while the remaining 35% will be distributed among new and existing investors. Sources reveal that notable supporters of ByteDance, such as General Atlantic, Sequoia, and Susquehanna, are likely to invest capital in TikTok's U.S. operations.

Susquehanna, an investment firm associated with prominent Republican donor Jeff Yass, has already made significant investments in ByteDance. Notably, Yass is also a stakeholder in Trump's social media platform, Truth Social.

White House representatives confirmed on Wednesday that China has accepted the conditions set by the U.S., and all parties engaged in the negotiation have agreed to the terms. With the Executive Order signed by President Trump on Thursday afternoon, the path has been cleared for the much-anticipated agreement, ensuring TikTok remains accessible to over 170 million users in the United States.

Since the election, Trump has shown a favorable inclination towards TikTok, suggesting that the platform may have played a role in his electoral success against Democratic challenger Kamala Harris.

Furthermore, Trump has issued four executive orders since his inauguration in January, postponing a bipartisan act introduced during the Biden administration. This legislation mandates that TikTok must transition to U.S. ownership due to concerns regarding national security.