Oracle Stock Climbs as White House Confirms TikTok Deal and Announces Leadership Shakeup
U.S. Takes Control of TikTok Operations
Oracle stock rose more than 5% Monday after the White House confirmed the company will play a leading role in a new venture controlling TikTok’s U.S. operations. The announcement comes as part of a broader agreement to move the app into American hands and address national security concerns.
According to senior officials, TikTok’s U.S. arm will be placed into a joint venture majority-owned by American investors. Oracle and Silver Lake, a private equity firm, will take the lead, while ByteDance — the China-based parent company — will hold less than 20% of the final stake.
Algorithm Shifted to U.S. Oversight
One of the most significant provisions of the agreement involves TikTok’s recommendation algorithm. Under the deal, the algorithm will be “copied, retrained, and placed under full U.S. control.” Oracle will serve as the group’s security provider, responsible for safeguarding data and ensuring the algorithm’s compliance with U.S. oversight.
Federal officials will regularly inspect the system to ensure it meets national security standards. While the U.S. government will not hold equity or a board seat, it may charge a facilitation fee connected to the deal.
President Donald Trump is expected to sign an executive order later this week formally approving the agreement, which he said involves “really great people, very prominent people” among its investors.
Oracle’s Expanding Role
Oracle already manages TikTok’s U.S. user data through its cloud services, a partnership estimated to account for around 5% of Oracle Cloud Infrastructure’s 2025 fiscal revenue. Analysts said the company’s deeper role in the new venture reinforces its position in the growing field of AI-driven cloud computing and strengthens its reputation as a trusted American security provider.
Leadership Transition
Alongside the TikTok announcement, Oracle revealed a major leadership change. Safra Catz, who has led the company for years, is stepping down. Clay Magouyrk, president of Oracle Cloud Infrastructure, and Mike Sicilia, president of Oracle Industries, will serve as new co-CEOs.
Both leaders were promoted within their divisions earlier this year, and their elevation signals a stronger focus on cloud technology and industry-specific applications moving forward.
National Security and Economic Stakes
The deal underscores Washington’s intent to keep control of social media platforms out of Beijing’s reach. By ensuring U.S. companies and investors oversee TikTok’s data and algorithm, the administration aims to safeguard American users from potential foreign influence while strengthening domestic technology leadership.
For Oracle, the agreement delivers both financial gains and strategic influence in a sector at the intersection of technology, security, and politics.
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