Oracle Boost from TikTok Deal! How does its flywheel work?

$Oracle(ORCL)$ is building its flywheel. How does it work?

TikTok’s U.S. user data will continue to be hosted by $Oracle(ORCL)$ on servers in Texas, under the extended Project Texas framework. This arrangement ensures strict physical isolation and independent third-party audits, reinforcing Oracle’s strategic role in U.S. data security.

Ownership of TikTok’s U.S. operations will now be 80.1% held by U.S. entities:

• Oracle & Walmart consortium: 40%

• U.S. private equity firms (e.g., Blackstone, Silver Lake): 30%

• Existing international investors: 10.1%

• ByteDance: reduced to 19.9%

This structure satisfies U.S. regulatory requirements while avoiding a complete technical split. TikTok U.S. will also establish an independent board with a U.S.-government–approved “national security director,” and Oracle, alongside academic partners, will gain real-time access to TikTok’s algorithm code and updates.

Larry now becomes the second billionaires now, surpassing $Meta Platforms, Inc.(META)$’s Zuckerberg.

👉 Positive for Oracle: The deal cements Oracle’s pivotal position in data hosting and algorithm oversight, boosting its reputation as a trusted U.S. partner in tech governance—potentially lifting its stock price further.

❓ With tighter oversight on TikTok’s algorithm and user data, is this a bearish signal for Meta’s dominance in U.S. social media?