On Wednesday, Oracle Corp (NYSE:ORCL) disclosed it has invested about $2.2 billion in the new U.S. entity running TikTok, confirming a 15% ownership stake following the restructuring of the platform’s American operations.
TikTok’s US Ownership Reshaped After ByteDance Divestment
The investment details emerged in Oracle’s quarterly filing for the period ending Feb. 28, where the company reported roughly $2.2 billion in “non-marketable debt investments and equity securities.”
The filing said the vast majority of those holdings relate to TikTok USDS Joint Venture LLC, the entity formed to oversee TikTok’s U.S. operations.
The restructuring stems from a 2024 national security law signed by former President Joe Biden requiring the Chinese parent company ByteDance to divest TikTok’s U.S. business or face a nationwide ban.
Later, President Donald Trump approved the divestment through an executive order.
Oracle Joins Investor Group In $14 Billion TikTok US Venture
Previously, Vice President JD Vance said that the new TikTok U.S. entity is valued at roughly $14 billion.
Oracle owns 15% of the venture and holds a board seat. Private equity firm Silver Lake and Abu Dhabi-based investment firm MGX each also control about 15%, while ByteDance retains just under a 20% stake.
Adam Presser was appointed CEO of the joint venture in January.
Oracle Now Hosts TikTok US Data And Security Infrastructure
Beyond its equity stake, Oracle plays a central operational role. The company hosts TikTok’s U.S. user data and serves as the platform’s independent security provider, monitoring its operations in the U.S.
The transition has faced some early hurdles. TikTok’s U.S. entity previously reported posting delays and service disruptions tied to issues at an Oracle data center, though the company later said the problems had been resolved.
Price Action: On Wednesday, shares of Oracle closed at $163.12, up 9.18% and slipped 1.82% in after-hours trading to $160.15, according to Benzinga Pro.
Oracle stock ranks Momentum in the 12th percentile in Benzinga’s Edge Stock Rankings and weak price performance across the short, medium and long-term time frames.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo: Jonathan Weiss / Shutterstock
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