A U.S.-China compromise keeps TikTok alive in America, and hands Oracle a pivotal role in its future.
- TikTok on Thursday said it has reached a deal in which a majority-American-owned joint venture will handle the application in the U.S. and help secure data.
- The U.S. division would be mainly managed by Oracle, private equity firm Silver Lake and Abu Dhabi-based MGX, each owning 15% stake.
- TikTok named Adam Presser as the CEO of the joint venture.
Oracle shares jumped higher in overnight trading after President Donald Trump said the U.S. and China reached a deal to keep the social media application running in America through a joint venture in which the cloud computing firm is a major investor.
Trump, in a Truth Social post, said a group of U.S. investors would handle TikTok’s operations in the country. “I am so happy to have helped in saving TikTok! It will now be owned by a group of Great American Patriots and Investors, the Biggest in the World, and will be an important Voice,” Trump said.
“I would also like to thank President Xi, of China, for working with us and, ultimately, approving the Deal. He could have gone the other way, but didn’t, and is appreciated for his decision,” he said.
Shares of Oracle traded 2% higher in overnight trading, according to Yahoo Finance. The stock is on track for a second straight session of gains. It had closed up 2.5% on Thursday, breaking a two-day losing streak.
The TikTok US
TikTok on Thursday said it has reached a deal in which a majority American-owned joint venture will handle the application in the U.S. and help secure data. The agreement allows American and global investors to hold 80.1%, while ByteDance, TikTok’s owner, will own 19.9%.
The U.S. division would be mainly managed by Oracle, private equity firm Silver Lake, and Abu Dhabi-based MGX, each owning 15% stake. The company said that the joint venture would “operate under defined safeguards that protect national security through comprehensive data protections, algorithm security, content moderation, and software assurances for U.S. users.”
TikTok named Adam Presser as the CEO of the joint venture. He currently serves as the head of operations and trust and safety at TikTok and has been with the company for nearly four years.
What Is Retail Thinking?
Retail sentiment on Oracle jumped to ‘extremely bullish’ from ‘bearish’ a week ago, with message volumes at ‘extremely high’ levels, according to data from Stocktwits.
The retail message volumes on the stock nearly doubled in the last seven days on Stocktwits, and the ticker saw a 64% spike in followers on the platform.
Oracle's shares have declined 3% over the last 12 months.
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