Abu Dhabi royal family to take stake in TikTok US under Trump deal

Core Insights - The Abu Dhabi royal family, through MGX, will acquire a 15% stake in TikTok's US business, which is valued at $14 billion following an executive order by Donald Trump [1][2] - The deal will result in American companies controlling over 65% of TikTok US, with significant investments from Oracle, Silver Lake, and other notable investors [2][3] - ByteDance, TikTok's Chinese parent company, will retain a 19.9% stake in the US operation, ensuring a minority interest in the business [3] Group 1 - The deal is part of a broader effort to ensure TikTok US is majority-owned and controlled by American investors, addressing privacy and national security concerns [3][4] - The valuation of TikTok US at $14 billion is significantly lower than ByteDance's overall valuation of approximately $330 billion [5] - The future of TikTok US had been uncertain due to legislative pressures and national security concerns, prompting the need for a sale [6] Group 2 - The deal is expected to enhance user confidence regarding data privacy, as it aims to protect American users' data from potential misuse [4] - Trump indicated that the deal had received a positive response from Chinese President Xi Jinping, although official approval from China remains unclear [4] - The involvement of high-profile investors like Larry Ellison and Rupert Murdoch underscores the strategic importance of the deal for the US market [2][3]