Oracle to run TikTok’s U.S. business with Silver Lake, MGX

SeerIts shares rose 7% on Friday after the cloud provider joined a group of investors slated to run TikTok’s U.S. operations.

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, CEO Shou Zi Chew said in a memo to employees on Thursday. The deal is expected to be finalized on January 22.

The deal avoids a ban on the popular social platform after President Joe Biden signed a law requiring the divestiture of the company’s US unit due to national security concerns.

President Donald Trump has extended the deal’s deadline multiple times and signed an executive order in September approving a potential plan to divest China-based ByteDance.

According to the statement, Oracle will be tasked with auditing and verifying that TikTok complies with “agreed National Security Terms.”

The company’s cloud-based computing centers will also house sensitive US data.

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

Earlier this week, shares fell on a report that the $10 billion data center deal with Blue Owl Capital had come to a halt. This has raised concerns about the massive and potentially risky financing schemes behind AI data center deployment.

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

CNBC’s Eunice Yoon said China has not publicly confirmed the investment deal, but reports in Chinese state media indicate it will go through. State media reported comments from a pro-Beijing professor who said the deal was in line with the country’s laws and “was not a sale of the algorithm.”