A potential agreement could see TikTok’s American operations acquired by a consortium of investors, including Oracle, Andreessen Horowitz, and Silver Lake Management. This framework deal is expected to be discussed between US President Donald Trump and Chinese President Xi Jinping later this week. The tentative agreement, revealed after talks in Madrid, would establish a US-based version of the social media app, with Oracle, Andreessen, and Silver Lake holding stakes in the new venture.
Under the proposed deal, ByteDance’s stake in TikTok would be reduced to below 20 per cent. This move aims to comply with a US national security law passed last year, which mandates that the Beijing-based company divest its American operations or face a ban in the US market. If the transaction is finalised with the approval of both Trump and Xi, the video-sharing platform will be able to continue operating in the US, potentially resolving a point of tension in US-China relations.
The agreement stipulates that Oracle will continue providing cloud services for TikTok in the US. Oracle is a computer technology company known for its database software and cloud systems. This business has become a reliable revenue stream for the Austin-based company. Oracle already collaborates with TikTok to host user data in the US and other countries, a partnership known as Project Texas.
Oracle shares experienced a surge in New York trading on Tuesday, rising by as much as 5.9 per cent before retracting most of those gains. The company’s stock has increased by 84 per cent year-to-date, largely driven by the growth of its cloud infrastructure business. Oracle provides cloud solutions that help businesses manage data and operations efficiently.
