Oracle Stock Surges 6% After Landing Pivotal TikTok Takeover Role
Tech giant Oracle just scored the deal that's making Wall Street do a double-take.
The Database Powerplay
Oracle's shares jumped 6% following confirmation they'll serve as the trusted technology partner in TikTok's complex ownership transition. The move positions Oracle at the center of one of the most watched tech acquisitions in recent memory.
Cloud Infrastructure Win
While financial terms remain undisclosed, industry analysts note this reinforces Oracle's growing cloud credibility against AWS and Azure. The TikTok partnership represents a strategic beachhead in the social media infrastructure wars.
Regulatory Chess Move
The arrangement cleverly navigates geopolitical tensions while giving Oracle prime access to TikTok's massive data streams. Because nothing says 'trustworthy' like handing your entire user database to a company that made its fortune selling proprietary licensing agreements.
Oracle just turned geopolitical tech drama into a 6% stock surge - proving that in modern finance, sometimes the best trade is being the one selling the shovels during a gold rush.
Oracle takes over security while ByteDance gets pushed aside
Clay Magouyrk, who now serves as one of Oracle’s new co-CEOs, was already managing the company’s cloud business, where the app’s user data is currently stored.
That cloud deal alone brought in around 5% of revenue for Oracle Cloud Infrastructure during its 2025 fiscal year, based on estimates from MorningStar’s Luke Yang. The arrangement is expected to continue under the new ownership model.
The U.S. government has made clear it won’t take a board seat, a “golden share,” or any equity stake in the joint venture. However, officials are considering a one-time fee for facilitating the transaction.
Trump is expected to sign an executive order this week declaring the deal a “qualified divestiture” under the ban-or-sale law passed last year. He also plans to extend the enforcement pause for another 120 days to allow final regulatory steps and paperwork to be completed.
ByteDance will simultaneously sign an agreement with the new American investors outlining the full framework. Trump extended the original ban until December 16, giving enough time for the entire deal to be completed early next year.
The White House said the agreement still requires approval from Chinese regulators, but officials expect no major problems. The deal also follows a recent call between Trump and Chinese President Xi Jinping.
“We are 100% confident that a deal is done,” said White House Press Secretary Karoline Leavitt over the weekend. She added that signatures are expected “in the coming days.”
Oracle installs two new CEOs while insiders cash out
As all this happens, Oracle quietly replaced its CEO, Safra Catz, on Monday behind the scenes. Safra had served in the role since 2014 and will now take a new position as executive vice chair of the board.
Oracle appointed Clay Magouyrk and Mike Sicilia as its new co-CEOs. Clay previously led Oracle’s AI cloud business, and Mike ran Oracle Industries, both were promoted to their former president roles back in June.
Insider trading among Oracle insiders also picked up as director William Parrett sold 11,500 shares between September 15 and 19 at a price of $306 each, totaling about $3.52 million, with the remaining stake now at 27,075 shares.
The full list of investors in the TikTok venture hasn’t been disclosed yet, but Oracle and Silver Lake are confirmed to be leading it. ByteDance’s minority stake means it’ll have no real say in the joint venture.
The deal marks the likely end of years of debate in Washington over whether TikTok should be allowed to operate in the U.S. under Chinese ownership. With this new structure, that question is finally getting a clear answer—and Oracle is now at the heart of it.
KEY Difference Wire: the secret tool crypto projects use to get guaranteed media coverage
