Oracle, the long-running software and cloud company, just landed a big strategic break after a rough stretch for its stock and business momentum.
Earlier in 2025, Oracle’s shares climbed sharply before sliding back as investors worried about its rapid data-center expansion and rising liabilities. But a new agreement involving TikTok’s U.S. operations has breathed fresh life into the company’s outlook.
What the deal involves
TikTok — owned globally by China’s ByteDance — has agreed to transfer control of its U.S. business to a new joint venture made up of several major investors, including:
Oracle
Silver Lake (a private-equity firm)
MGX (an investment company from Abu Dhabi)
Under this structure, each of these three partners receives about a 15% ownership stake in the new U.S. TikTok entity.
Oracle’s role and what it means
Oracle is being positioned as the venture’s “trusted security partner.” That means:
U.S. TikTok user data will be stored in Oracle’s cloud infrastructure.
Oracle will help retrain TikTok’s recommendation algorithm using American user data so that content delivery is insulated from foreign influence — a key national security concern.
This responsibility directly taps into Oracle’s cloud and cybersecurity capabilities, potentially boosting demand for its services at a time when the company has been seeking growth outside slower-moving traditional software businesses.
A potentially big business win
The deal values TikTok’s U.S. operations at roughly $14 billion, and parent company ByteDance is expected to generate record profits this year.
Analysts estimate that Oracle could see an extra $1 billion to $2 billion in annual revenue from its participation, mainly through cloud services — though this figure is approximate and depends on execution.
Market impact
News of the agreement gave Oracle’s stock a noticeable bump, reflecting investor enthusiasm over the company’s new strategic foothold with a globally recognized consumer platform.
In short, while Oracle has faced challenges this year, the TikTok U.S. deal offers a timely boost — giving the company a high-profile partnership that could help drive future growth in its cloud and security business lines.
