$ORCL ( ▲ 7.58% ) is up about 5.5% in premarket trading Friday after TikTok owner ByteDance signed agreements to sell TikTok’s US operations to a consortium that includes Oracle, according to a memo from TikTok CEO Shou Zi Chew that has been widely cited.
What the deal looks like
The consortium reportedly includes Oracle, private equity firm Silver Lake, and MGX, a technology investment company backed by Abu Dhabi. The structure of the transaction appears broadly consistent with a framework first discussed in September, which valued TikTok’s US business at roughly $14 billion.
That valuation stands out as relatively modest compared with other large social media platforms, especially given TikTok’s scale, engagement, and advertising potential. For investors, the price tag suggests the group may be acquiring one of the most influential consumer apps in the US at a discount.
Why Oracle is benefiting
For Oracle, the upside goes beyond owning a stake in a popular social media platform. TikTok already relies on Oracle for cloud infrastructure in the US, and deeper involvement could further entrench Oracle as a core technology partner for the app.
That relationship matters as Oracle continues to push its cloud business against much larger rivals. Any expansion of TikTok’s US operations, data needs, or ad technology could translate into incremental cloud revenue and longer-term contracts for Oracle.
Why the market is reacting now
Oracle’s shares have been under pressure amid broader concerns about heavy AI and data center spending. News that TikTok’s US future may be resolved, with Oracle playing a central role, gives investors a clearer narrative around strategic growth rather than just capital intensity.
In short, markets are treating the deal as both a validation of Oracle’s cloud relevance and a chance to pick up a massively sticky consumer platform at an attractive valuation.