Oracle‘s stock jumped 7% Friday after the cloud provider joined a group of investors slated to lead TikTok‘s U.S. operations.
In a memo to employees Thursday, CEO Shou Zi Chew said the social media company’s U.S. division will be run by a joint venture that includes Oracle, Silver Lake, and Abu Dhabi-based MGX. The deal is expected to close on Jan. 22.
The agreement prevents the popular social platform from getting banned after President Joe Biden signed a law requiring a divestiture of the company’s U.S. unit due to national security concerns.
President Donald Trump extended the deadline for a deal on multiple occasions and signed an executive order in September that approved a potential plan for China-based ByteDance to divest.
Oracle will be tasked with auditing and validating that TikTok follows “agreed upon National Security Terms,” according to the memo.
The company’s cloud-based computing centers will also house sensitive U.S. data.
For Oracle, the deal comes at the end of what has been a chaotic 2025 for the cloud provider.
Earlier this week, shares slumped on a report that talks over a $10 billion datacenter deal with Blue Owl Capital had reached a standstill. That exacerbated concerns over the massive — and potentially risky — funding plans behind the artificial intelligence data center buildout.
Oracle shares are up 8% this year and have pulled back more than 20% over the last month.
China has not publicly confirmed the investment deal, but reports in Chinese state media suggest that the deal will go through, CNBC’s Eunice Yoon said. State-run media reported comments from a pro-Beijing professor, who said the deal was in-line with the country’s laws and is “not a sale of the algorithm.
Oracle one month stock chart.
