Oracle Stock Rises After US-China TikTok Deal

Oracle (ORCL) shares rose sharply on Tuesday following reports that the United States and China have agreed on a preliminary framework to keep TikTok operating in the US. The stock movement reflects investor optimism over Oracle’s potential role in the deal and the broader implications for its cloud and data security business.

Madrid Trade Talks Result in Preliminary TikTok Agreement

Officials from the US and China reached the preliminary framework during trade discussions in Madrid. The agreement outlines conditions under which TikTok can continue serving American users while meeting US regulatory requirements. Treasury Secretary Scott Bessent confirmed that final approval is pending further discussions between US and Chinese leaders scheduled for later this week.

The framework specifically addresses data security and operational control, paving the way for a US-based company to manage TikTok’s US operations. Analysts say this is the first tangible progress toward resolving months of regulatory uncertainty that threatened TikTok with a potential ban.

Oracle Emerges as Leading Contender to Acquire US TikTok Operations

Under the proposed deal, Oracle would oversee TikTok’s US user data through its cloud infrastructure, part of a program called Project Texas launched by TikTok in 2022. This initiative isolates US data from international servers, aiming to comply with national security standards.

Industry experts note that Oracle’s expertise in cloud computing and enterprise security makes it a strong candidate. Managing TikTok’s data would give Oracle access to a massive user base while positioning the company as a key player in US social media infrastructure.

Oracle Stock Reaction and Market Implications

Oracle’s stock surged in premarket trading Monday after early reports of the deal surfaced, rising as much as 5%. Analysts suggest the acquisition could significantly boost Oracle’s revenue from cloud and security services while reinforcing its credibility with government contracts and enterprise clients.

The move also signals to investors that Oracle is expanding beyond traditional enterprise software into emerging social media infrastructure, a sector with high growth potential. Market watchers expect continued volatility as negotiations progress, with further stock reactions likely once final terms are announced.

Regulatory Pressure on TikTok and the Divestment Deadline

TikTok faces a US divestment deadline of September 17, requiring ownership by a US or allied company unless the timeline is extended. Failure to comply could result in a ban from the US market.

The Madrid agreement provides a potential path forward, but the final deal hinges on the upcoming US-China leader talks. Legal experts note that Oracle’s involvement would help satisfy regulatory concerns by ensuring TikTok’s American user data is controlled domestically.

Oracle Prepares for TikTok Data Management Role

The TikTok acquisition would expand Oracle’s role in managing large-scale, secure data operations in the US through Project Texas. Earlier this year, chairman Larry Ellison announced a $500 billion AI data center initiative, highlighting the company’s growing cloud and AI capabilities. Analysts say taking on TikTok could create a new revenue stream while strengthening Oracle’s position in both consumer-facing infrastructure and enterprise cloud services. Oracle’s stock has already risen 81% this year, driven by cloud growth and partnerships including a $300 billion deal with OpenAI.

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