Tuesday, 02 January 2024 12:17 GMT

Oracle, Silver Lake Part Of Group Of Investors Who Will Own About 50% Of Tiktok US, Source Says


(MENAFN- Khaleej Times)

A group of three investors, including Oracle and private-equity firm Silver Lake, will take a roughly 50% stake in TikTok U.S., a source familiar with the deal said on Thursday.

A group of existing shareholders in TikTok's Chinese parent, ByteDance, will hold a roughly 30% stake, the source said. Among ByteDance's current investors are Susquehanna International Group, General Atlantic and KKR.

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Given intense investor interest in TikTok, the 50% stake may still shift, the source noted.

Oracle and Silver Lake did not immediately respond to a Reuters request for comment.

U.S. President Donald Trump is expected to sign a TikTok deal later on Thursday that would divest the app's U.S. operations from ByteDance, ending months of uncertainty over its future in the country.

The agreement on TikTok's U.S. operations includes ByteDance appointing one of seven board members for the new entity, with Americans holding the other six seats, a senior White House official said on Saturday.

ByteDance would hold less than 20% in TikTok U.S. to comply with requirements set out in a 2024 law that ordered it shut down by January 2025 if its U.S. assets were not sold by its China-based owner ByteDance.

CNBC reported earlier that Abu Dhabi-based MGX, Oracle and Silver Lake are poised to be the main investors in TikTok U.S. with a combined 45% ownership, citing sources.

MGX did not immediately respond to a Reuters request for comment on the CNBC report.

MGX is an artificial intelligence investment firm and a partner of Silver Lake, and falls under the purview of Sheikh Tahnoon bin Zayed Al Nahyan, the United Arab Emirates' national security adviser and brother of the President Mohamed bin Zayed Al Nahyan.

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