Oracle stock jumps 5% as cloud provider joins investor group to run TikTok's U.S. business

Oracle stock jumps 5% as cloud provider joins investor group to run TikTok's U.S. business

Published Fri, Dec 19 2025

9:06 AM EST

Updated 2 Min Ago

Key Points

• Oracle's stock jumped after the cloud provider joined a group of investors slated to lead TikTok's U.S. operations.
• The deal prevents a shutdown of the app in the U.S. over national security concerns.
• Oracle shares have been on a tumultuous run in recent weeks as fears mount over the sustainability of the AI trade.

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Oracle deal with TikTok puts tech momentum back on track

Oracle's stock jumped about 5% Friday after the cloud provider joined a group of investors slated to lead TikTok's U.S. operations.

In a memo to employees Thursday, CEO Shou Zi Chew said the social media company's U.S. division will be run by a joint venture that includes Oracle, Silver Lake, and Abu Dhabi-based MGX. The deal is expected to close on Jan. 22.

The agreement prevents the popular social platform from getting banned after President Joe Biden signed a law requiring a divestiture of the company's U.S. unit due to national security concerns.

President Donald Trump extended the deadline for a deal on multiple occasions and signed an executive order in September that approved a potential plan for China-based ByteDance to divest.

Oracle will be tasked with auditing and validating that TikTok follows "agreed upon National Security Terms," according to the memo.

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The company's cloud-based computing centers will also house sensitive U.S. data.

For Oracle, the deal comes at the end of what has been a chaotic 2025 for the cloud provider.

Earlier this week, shares slumped on a report that talks over a $10 billion datacenter deal with Blue Owl Capital had reached a standstill. That exacerbated concerns over the massive — and potentially risky — funding plans behind the artificial intelligence data center buildout.

Oracle shares are up 8% this year and have pulled back more than 20% over the last month.

China has not publicly confirmed the investment deal, but reports in Chinese state media suggest that the deal will go through, CNBC's Eunice Yoon said. State-run media reported comments from a pro-Beijing professor, who said the deal was in-line with the country's laws and is "not a sale of the algorithm.

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