Oracle $ORCL shares are up +7.7% after joining the investor group that will run TikTok's U.S. operations.
TikTok CEO Shou Zi Chew confirmed in a memo to employees that the U.S. division will be run by a joint venture including Oracle, Silver Lake, and Abu Dhabi-based MGX. The deal is expected to close January 22.
Oracle will audit and validate that TikTok follows "agreed upon National Security Terms." The company's cloud-based computing centers will also house sensitive U.S. data.
Evercore ISI called the news a "nice win" for Oracle with upside potential: "We continue to believe the recent pullback represents an interesting entry point."
The deal caps a chaotic stretch for Oracle. Shares slumped earlier this week on a report that talks over a $10 billion datacenter deal with Blue Owl Capital had reached a standstill.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
