According to a CNBC report, the three investors would collectively hold about 45% of TikTok US.
Oracle, Silver Lake, and MGX are reportedly set to become the primary investors in TikTok’s U.S. operations, in a deal designed to address U.S. national security concerns over the Chinese-owned social media app.
According to a CNBC report, the three investors would collectively hold about 45% of TikTok US, while ByteDance, TikTok’s Chinese parent company, would retain a 19.9% stake. The remaining 35% would be owned by other ByteDance investors.
Oracle’s stock fell as much as 6.3% in afternoon trade on Thursday after the company received a ‘Sell’ rating from Rothschild Redburn, which predicted a 40% pullback because the “market materially overestimates” how much Oracle’s recent AI deals will boost the company’s core cloud business.
However, retail sentiment around the company remained at ‘extremely bullish’ levels amid ‘high’ levels of chatter over the past, according to Stocktwits data. Meanwhile, retail sentiment around ByteDance, which isn’t a publicly listed company, was in the ‘neutral’ zone.
The proposed deal comes after months of negotiations aimed at allowing TikTok to continue operating in the U.S. while mitigating concerns about user data access by foreign entities. Under the agreement, Oracle is expected to provide cloud infrastructure support, while Silver Lake and MGX would contribute as strategic financial partners. The U.S. government will reportedly not have any equity stake or ‘golden share.’
President Donald Trump said on Sunday that Rupert Murdoch, Lachlan Murdoch, Oracle’s Larry Ellison, and Dell Technologies’ (DELL) Michael Dell would all have roles in the transaction.
According to the report, Trump is scheduled to sign an executive order on Thursday backing the arrangement. The order would formalize the deal, ensuring TikTok’s ongoing operations in the U.S. under the new ownership structure after several postponed deadlines.
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