Key Insights on the Owners of US TikTok
ByteDance, the Chinese parent company of TikTok, has made significant changes to its U.S. operations. This restructuring aims to address ongoing concerns regarding data privacy and the potential foreign influence on American users. In 2024, U.S. Congress mandated a separation between TikTok’s U.S. operations and ByteDance.
Key Insights on the Owners of US TikTok
As a result of this restructuring, TikTok’s U.S. entity is now known as “TikTok USDS Joint Venture LLC.” Notably, approximately 80% of this entity is owned by non-Chinese investors, while ByteDance retains a minority share of 19.9%.
Ownership Breakdown
- Oracle: 15% stake
- Silver Lake: 15% stake
- MGX: 15% stake
This investment group collectively holds 45% of the U.S. operation. Each firm plays a crucial role in shaping TikTok’s future in the United States.
Role of Oracle
Oracle stands as a leading player in cloud computing and database services. Currently, it provides infrastructure for TikTok and oversees U.S. user data management. Under the new agreement, Oracle will act as TikTok’s security partner, ensuring compliance with U.S. regulations and managing data storage and algorithm updates. Oracle’s co-founder, Larry Ellison, has notable connections to political figures, adding another layer of significance to the company’s role.
Insight into MGX
Based in the United Arab Emirates, MGX is primarily focused on AI investments. Founded by Mubadala and G42, MGX’s involvement with TikTok could influence major decisions regarding the platform’s AI technology. The firm is also known for supporting significant AI initiatives, collaborating with companies like OpenAI, and investing in emerging technologies.
Silver Lake’s Contributions
Silver Lake is a prominent private equity firm that has a history of investing in high-profile technology ventures. Its function within TikTok is largely financial, offering both capital and strategic direction. Silver Lake’s previous collaborations include working with MGX, particularly in technology acquisitions.
Additional Investors
Besides the main trio, several additional investors participate in TikTok’s U.S. operations:
- Dell Family Office: Investment firm of Michael Dell
- Vastmere Strategic Investments: Affiliated with billionaire Jeff Yass
- Alpha Wave Partners: Involved with various global companies
- Virgo LI: Backed by tech investor Yuri Milner
- NJJ Capital: Family office of French entrepreneur Xavier Niel
- Revolution: Founded by Steve Case
- Merritt Way: Associated with Dragoneer Investment Group
- Via Nova: Linked to General Atlantic
This revised structure aims to enhance TikTok’s operations while addressing government concerns. The changes could reshape the app’s future, highlighting the increasing intersection of technology, investment, and regulatory frameworks in the digital age.