Oracle, Silver Lake, and Abu Dhabi's MGX are taking a 45% controlling stake in TikTok's U.S. operations, sources tell CNBC. The deal, backed by President Trump's executive order, allows ByteDance to retain just 19.9% ownership while avoiding a federal shutdown. This represents the largest forced divestiture in tech history, reshaping social media's competitive landscape as 170 million American users hang in the balance.
Oracle just orchestrated the tech industry's most dramatic forced acquisition. The enterprise software giant is leading a consortium that includes private equity powerhouse Silver Lake and Abu Dhabi's sovereign wealth fund MGX to take control of TikTok's U.S. operations, fundamentally reshaping the social media wars. The investor group will control 45% of TikTok USA, sources told CNBC's David Faber, while Chinese parent ByteDance gets pushed down to a mere 19.9% stake. The remaining 35% lands with existing ByteDance investors and new stakeholders, creating an American-majority ownership structure that satisfies federal regulators. President Trump is signing an executive order Thursday backing the proposed deal, effectively rescuing the platform from a December shutdown that would have cut off 170 million American users. The move marks a stunning reversal from the federal law passed with bipartisan support that demanded ByteDance either sell or shut down over national security fears about TikTok's content algorithm. Oracle isn't just writing checks - they're taking operational control of TikTok's security infrastructure, positioning themselves as the technical backbone ensuring American data stays American. This gives Oracle unprecedented access to one of the world's most sophisticated recommendation engines while expanding their cloud footprint into consumer social media. Silver Lake's involvement brings serious private equity firepower to the deal, while MGX represents Abu Dhabi's aggressive push into American tech assets. The consortium structure mirrors how major infrastructure deals get funded, treating TikTok like a critical digital utility rather than just another social app. Trump's support stems from his belief that TikTok helped secure his November victory, repeatedly citing the platform's role in reaching younger voters. The political calculus gets more complex when you consider that billionaire Republican megadonor Jeff Yass holds major ByteDance stakes through Susquehanna and also owns pieces of Trump's Truth Social parent company. Existing ByteDance backers including General Atlantic, Susquehanna, and Sequoia are expected to contribute equity to the new TikTok USA structure, according to sources. This means Silicon Valley's top venture firms get to maintain exposure to TikTok's growth while satisfying regulatory demands for Chinese divestiture. The deal explicitly avoids giving the federal government any equity stake or 'golden share' in TikTok's operations, sidestepping concerns about state control of private platforms. Instead, the new joint venture will operate with a board comprised of majority American members, ensuring operational independence from Beijing. Oracle Executive Chairman finds himself at the center of the year's biggest tech deal, alongside potential involvement from media mogul and his son Lachlan, plus CEO Michael Dell - creating an all-star roster of American tech and media power brokers. The TikTok restructuring sets a massive precedent for how Washington handles Chinese-owned tech platforms going forward. With tensions rising over everything from AI chips to data sovereignty, this forced divestiture model could become the template for future national security interventions in tech M&A.
