TikTok has reportedly signed a deal to spin off its US operations to an investor group that includes software giant Oracle. The new joint venture will be 50% owned by a consortium of investors, with each firm holding 15%. The deal aims to satisfy the requirements of a 2024 law banning TikTok unless its Chinese parent company divests ownership.
The law requires ByteDance to sell off at least 20% of its US operations. In September, President Trump announced a similar structure, including a $14 billion valuation for TikTok’s US operations. The deal will keep the app available for Americans and provide Oracle with a stake in the popular short-video platform.
Oracle’s stock jumped over 4% in premarket trading, following the news. Analyst Kirk Materne said the deal is “nice win” for Oracle, locking in a key cloud customer and providing upside optionality over the long-term. He rates Oracle stock as outperform with a price target of 275.
Source: https://www.investors.com/news/technology/oracle-stock-tiktok-ban-us-venture