The proposed transaction price for TikTok's US business is only 14 billion dollars, and Oracle (ORCL.US), Silver Lake, MGX or 45% of the shares held won the board seat

The Zhitong Finance App learned that US President Trump has approved a proposal to allow TikTok to continue operating in the US. Vice President Vance said that this deal will cost TikTok's US business about 14 billion US dollars. According to the proposal, TikTok's US business will be controlled by an American investment group, and Oracle (ORCL.US) will act as the TikTok security service provider.

The specific membership of the investment group has yet to be finalized. Trump's executive order stipulates that the deal must be completed within 120 days, and it is unclear whether the Chinese side will approve the plan.

According to people familiar with the matter, Oracle, Silver Lake Capital, and UAE MGX are in discussions to invest in TikTok's US business and obtain a seat on the board of directors. One of the sources said that the Trump administration recently encouraged MGX to join a non-Chinese holding coalition. ByteDance will hold less than 20% of TikTok's shares in the US.

Vance stated that “the final investment amount and valuation will be determined by investors,” and pointed out that “there is some resistance from the Chinese side.”

The $14 billion valuation fell far short of what some analysts expected. In April of this year, Wade Bush Securities analyst Dan Ives estimated that TikTok is worth about 100 billion US dollars including algorithms and 30 to 40 billion US dollars without algorithms.

Ashwin Binnwani, founder of Alpha Binwani Capital, said this “may be the lowest-valued technology acquisition case in ten years,” arguing that the actual valuation was undervalued by about two-thirds, and pointed out that “all core financial indicators compared to peers showed that the pricing seriously deviated from reality.”

It is reported that the three parties each plan to hold about 15% of the shares and get a board seat, but the shareholding ratio may be adjusted. The negotiations stemmed from Trump's request that ByteDance sell TikTok's US business to US investors. According to an agreement in progress, ByteDance's shareholding will be reduced to less than 20% to meet the requirements of the US 2024 Act, otherwise it will face a nationwide ban.

As an investment vehicle newly established by Mubadala Investment Company and tech giant G42 in 2024, MGX has invested in star companies such as OpenAI and Databricks, and set up infrastructure and energy investment teams.

The agency is headed by UAE national security adviser and president's brother Sheikh Tahnoun bin Zayed Al Nahyan. It manages an industrial empire of 1.5 trillion US dollars and is currently planning to raise billions of dollars in third-party funding for the field of artificial intelligence.

In March of this year, MGX invested $2 billion in Binance Holdings through stablecoins issued by the Trump family's decentralized finance project World Liberty Financial.