Oracle's stock surged 6.90% intraday on Friday, reflecting strong investor optimism following the announcement of its pivotal role in TikTok's U.S. joint venture.
The tech giant has signed binding agreements with TikTok's parent company, ByteDance, to form a new U.S. entity named TikTok USDS Joint Venture LLC. Oracle, alongside Silver Lake and MGX, will collectively own 45% of the venture, securing TikTok as a key customer for Oracle's cloud services. Analysts highlight this as a high-margin, long-term opportunity for Oracle, with the joint venture set to oversee U.S. data protection and content moderation.
The deal, expected to close by January 22, 2026, resolves years of uncertainty about TikTok's U.S. operations and positions Oracle as a central player in the social media platform's future. Mizuho analysts noted that the partnership could drive "durable upside" for Oracle's cloud business.
Comments