The Abu Dhabi royal family will acquire a 15% stake in
TikTok’s US business through the MGX fund chaired by Sheikh Tahnoon bin Zayed
Al Nahyan, as part of a $14 billion deal brokered by former President Donald
Trump. The agreement aims to address US national security concerns by ensuring
significant American ownership and control over TikTok’s US operations.
Background and Deal Overview
As reported by Alex Hern of The Guardian, the deal
was finalised during the Trump administration to settle ongoing regulatory and
national security challenges facing TikTok in the United States. The
arrangement involves spinning off TikTok’s US operations into a separate entity
valued at approximately $14 billion, with the Abu Dhabi royal family investing
via MGX, securing a 15% ownership share plus a seat on the board.
This move is part of a broader strategy to diversify TikTok
US’s ownership and reduce influence from its Chinese parent company ByteDance,
which retains a 19.9% stake. Other major stakeholders include Oracle, Silver
Lake, and prominent US investors such as Michael Dell and Rupert Murdoch’s Fox,
combining to hold roughly 45% ownership. Overall, American investors will
control just over 65% of TikTok US.
Role of the Abu Dhabi Royal Family and MGX
Sheikh Tahnoon bin Zayed Al Nahyan, UAE National Security
Advisor, chairs MGX — the investment fund through which the Abu Dhabi royal
family is securing its stake. As noted by the Eulerpool report, Sheikh
Tahnoon’s involvement marks a significant Gulf investment into the US tech
landscape, reflecting a strategic decision to channel Abu Dhabi’s sovereign
wealth into technology sectors amid geopolitical shifts.
MGX’s contribution in the deal apparently also secures a
board seat, strengthening the royal family’s engagement in managing TikTok’s US
business.
Regulatory and Political Considerations
The deal derives from an executive order signed by Donald Trump in late September 2025, which provides a 120-day period for completion of
the transaction. The order is designed to comply with 2024 US legislation
demanding ByteDance divest its US TikTok operations or face a ban. This
legislation was influenced by enduring concerns over data security and
influence by the Chinese government.
Supporting the deal’s security framing, US Vice President JD Vance is quoted by The News as saying,
“This deal really does mean that Americans can use TikTok, but actually use it with more confidence than in the past. Because their data is going to be secure and it’s not going to be used as a propaganda weapon against our fellow citizens”.
Vance also confirmed the $14
billion valuation of TikTok US.
Former President Trump, during the signing at the White
House, indicated that Chinese President Xi Jinping had signalled approval
following discussions between the two leaders, although Beijing’s public
response has been cautious. The deal includes provisions ensuring that the
TikTok algorithm used in the US will be developed domestically and monitored
for adherence to US security standards.
Strategic and Market Implications
This transaction represents a landmark instance of Middle Eastern capital entering a major US technology platform, further complicated by
geopolitical dynamics between the US, China, and the Gulf states. The Abu Dhabi
royal family’s participation reflects both an economic and strategic intent to
cement ties with US tech leadership while finding new outlets for sovereign
wealth investment.
The valuation of $14 billion for TikTok’s US operations is
modest when contrasted with ByteDance’s estimated overall valuation of $330
billion and other major tech giants, yet it signals an important regulatory and
geopolitical breakthrough for TikTok’s continued US market access.
The Abu Dhabi royal family, via MGX, is acquiring a 15% stake in a newly separate TikTok US entity, within a $14 billion deal brokered and approved by former President Donald Trump. This agreement is a response to US national security concerns requiring diversification of ownership away from ByteDance. Major American tech investors and the royal family’s fund will maintain majority control, with the US government emphasising data security and operational governance reforms as integral to the deal. This arrangement marks a critical development for TikTok’s future stability and growth in the American digital market.