TikTok's 'Deal': US National Security Concerns Recede When Private Equity Moves In
📰 THE STORY: Bloomberg reports that TikTok has finalized a deal to transfer parts of its US operations to a new US entity, with Oracle, Silver Lake Management LLC, and Abu Dhabi-based MGX as key investors, effectively averting a nationwide ban and cementing its future on American soil. 🔍 WHAT THEY'RE NOT TELLING YOU: Historical Context: Remember when US officials pressured Chinese telecom giant
Huawei out of the US and allied markets starting around 2018, citing 'national security risks' and fears of Chinese government access to data? This led to crippling sanctions, effectively neutering a major competitor in 5G technology. The current TikTok deal follows a similar playbook of weaponizing 'national security' to force a transfer of assets or market share. Double Standard: The intense
scrutiny and forced divestment for TikTok, a consumer social media app, stand in stark contrast to the quiet acquiescence to massive Gulf state investments in sensitive US infrastructure and tech firms. For example, Abu Dhabi-based MGX, now a key investor in 'US' TikTok, is part of a UAE sovereign wealth fund that also invests heavily in US defense contractors and critical technology, often
without the same level of hand-wringing over 'foreign influence' or 'data security' in mainstream discourse. Follow the Money: Oracle's co-founder, Larry Ellison, is a prominent Republican donor, and Oracle itself has deep ties to the US government, including cloud computing contracts with the Pentagon and CIA. Silver Lake is a major private equity firm, and MGX is backed by the UAE government.