Oracle Shares Surge on TikTok Joint Venture, Highlighting Cloud Security Role
Oracle Corporation's stock climbed nearly 6% after confirming its pivotal role in TikTok's U.S. joint venture, reinforcing its position as a trusted cloud security partner. The agreement with ByteDance transfers control of TikTok's U.S. operations to a consortium including Oracle, Silver Lake, and Abu Dhabi's MGX, with Oracle holding a significant stake in the newly formed entity.
The deal, slated to close by January 2026, underscores Oracle's expanding influence in cloud infrastructure and AI-driven workloads. While regulatory hurdles remain, analysts view the partnership as a strategic win, though execution risks and margin pressures persist amid capital-intensive expansion.