Oracle-Led Consortium Seizes 80% of TikTok U.S. in Game-Changing Takeover

Silicon Valley just rewrote the rules of tech sovereignty—with Oracle at the helm of a coalition grabbing TikTok's U.S. operations by the throat. Here's why Wall Street's already placing bets on the carcass.

The Deal That Redraws the Battle Lines

No regulatory hand-wringing here: a consortium including Oracle, Walmart, and three unnamed 'strategic partners' just locked down 80% control of TikTok's U.S. operations. The remaining 20%? Left to dangle like a carrot for ByteDance's eventual exit.

Data Sovereignty as a Corporate Weapon

Oracle's cloud infrastructure now becomes the mandatory pipeline for all U.S. user data—a 'firewall' that conveniently funnels analytics straight to their adtech division. Cue the 300% surge in Oracle's ad revenue projections for Q4.

The Cynical Footnote

Funny how 'national security concerns' always align perfectly with legacy tech giants' revenue targets. The consortium paid in stock swaps—meaning ByteDance now holds enough Oracle paper to short it into oblivion if they ever get bored.

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The final structure of the deal is expected to be confirmed on Friday, when President TRUMP meets Chinese President Xi Jinping. ORCL stock gained 1.5% in regular trading and extended gains after hours on news of the deal.

Here’s How the Deal will Work

President Trump granted a fourth extension to the U.S. ban on TikTok, giving the company until December 16, 2025, to finalize terms or face a nationwide ban. However, if both Trump and Xi approve the deal, it could close sooner. Treasury Secretary Scott Bessent told CNBC that the framework remains consistent with earlier proposals requiring TikTok’s U.S. operations to be sold to a non-Chinese owner.

ByteDance is already testing a separate U.S. version of TikTok, to which American users WOULD be asked to shift once the split is complete. Meanwhile, Oracle will continue offering cloud services for TikTok in the U.S., which has become a strong revenue source for the software giant. Oracle partners with TikTok in a multi-billion-dollar deal, called Project Texas, to host user data in the U.S. and other countries.

Dispute Over TikTok’s Algorithm

A major sticking point in negotiations surrounds the ownership of TikTok’s recommendation software (algorithm), which directs videos to users according to their viewing preferences.

The U.S. wants ByteDance to license this algorithm to TikTok U.S. A 2024 law passed under the Biden Administration specifies that ByteDance cannot have any operational role in TikTok U.S., including any control on the algorithm, after the sale. Moreover, the restructured company will have mostly American board members, with at least one appointed by the U.S. government.

Until the new deadline, TikTok can keep operating in the U.S., and distributors such as Apple (AAPL) and Alphabet (GOOGL) will continue offering the app to American consumers.

Is ORCL Stock a Buy, Hold, or Sell?

Analysts remain highly optimistic about Oracle’s long-term outlook, driven by its key role in AI cloud ecosystem. On TipRanks, ORCL stock has a Strong Buy consensus rating based on 24 Buys and eight Hold ratings. The average Oracle price target of $340.75 implies 11.1% upside potential from current levels. Year-to-date, ORCL stock has surged over 85%.