Oracle stock rises as White House names software giant in TikTok deal; company announces CEO shake-up
Oracle (ORCL) stock rose more than 6% Monday as the White House confirmed that the software giant is part of a consortium of investors that will control TikTok’s US operations. The company also separately announced a CEO shake-up.
A senior White House official on Monday morning confirmed the details of the TikTok deal, which will move the social media app’s US operations into a new joint venture based in the United States and controlled by American investors, who will have a majority of the new company’s ownership stake and of its board seats.
Oracle and Venture Private Equity firm Silver Lake are set to lead the new venture, with China-based tech giant ByteDance holding a less than 20% equity stake.
The venture will receive a copy of TikTok’s valuable content recommendation algorithm, which will be “fully inspected” and “retrained” by Oracle — the group’s security provider — on US user data. The algorithm will be regularly inspected by US government officials.
“We feel [this] meets every security requirement that we need for the algorithm to make sure it’s behaving appropriately,” a senior White House official said.
Trump is set to sign an executive order later this week declaring that the terms of the new TikTok agreement meet America’s national security needs. The president has touted the deal repeatedly and said Sunday that the final list of investors would be “really great people, very prominent people.”
TikTok, the short-form video app owned by ByteDance, faced a US ban due to national security concerns unless it divested its ownership to a US- or US-allied country by Dec. 16. Congress passed a law effectively banning TikTok in 2024 under former President Joe Biden, and Trump promised to “save” the app on his campaign trail despite originally trying to ban TikTok in his first term. The US president extended the deadline for TikTok to divest its ownership multiple times as the app featured in high-stakes trade talks between the US and China.
The White House official said the US government has no plans to take equity, a “golden share,” or a board seat — as it has with US Steel and Intel — though it might charge a fee for facilitating the deal.
Multiple outlets had reported previously that Oracle would be part of a consortium of investors that would control TikTok’s US operations.
Analysts have told Yahoo Finance that Oracle’s involvement in such a deal is seen as a positive for the software company because it would expand its partnership with TikTok. Oracle has worked with TikTok to store the app’s American user data since 2022, and that ongoing deal accounted for 5% of the revenue seen by its booming cloud business, Oracle Cloud Infrastructure (OCI), in its 2025 fiscal year, Morningstar analyst Luke Yang estimated.
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