RBC said Oracle’s TikTok role could support cloud growth via expanded data infrastructure exposure.
- RBC said that the deal could ease concerns about Oracle’s reliance on a small number of major cloud customers.
- Oracle will own a minority stake in TikTok’s U.S. operations as part of the buyer consortium.
- Oracle becomes central to a politically sensitive, regulation-driven tech deal.
Oracle Corp. (ORCL) could be one of the biggest beneficiaries of TikTok’s long-awaited U.S. divestment, with Wall Street viewing the deal as more than a regulatory workaround for the short-video app.
A Cloud Catalyst For Oracle
RBC Capital said Oracle’s involvement in the buyer consortium could support Oracle Cloud Infrastructure (OCI) growth at a time when investors have been watching customer concentration risks, particularly its reliance on OpenAI.
The brokerage firm said the transaction could deliver both strategic and economic benefits for Oracle, including deeper involvement in TikTok’s U.S. data infrastructure and an equity stake in one of the world’s most valuable private companies.
The firm said this positioning could help offset concerns around OCI growth while strengthening Oracle’s role in large-scale consumer data platforms.
How The TikTok US Deal Is Structured
Under the proposed agreement, TikTok’s U.S. operations will move into a new entity, TikTok USDS Joint Venture LLC. Oracle, Silver Lake, and Abu Dhabi-based MGX will reportedly own about 45% of the venture, while existing ByteDance investors will hold roughly 33% and ByteDance will retain around a 20% stake.
The deal, reportedly signed by ByteDance and expected to close next month at an implied valuation of about $14 billion, gives Oracle exposure to a platform whose parent is projected to generate nearly $50 billion in net profit by the end of this year.
Regulatory Relief
The deal ends more than a year of uncertainty for TikTok, which faced the threat of a forced shutdown amid U.S.–China tensions. While it ensures continuity for U.S. users, creators, and advertisers, the agreement has drawn political attention.
Some critics have questioned whether the structure fully addresses national security concerns, particularly over control of TikTok’s recommendation algorithm, while others have raised concerns about U.S. President Donald Trump’s direct involvement in the process.
What Did Stocktwits Users Say?
On Stocktwits, retail sentiment for Oracle was ‘bullish’ amid ‘high’ message volume.
One user urged investors to accumulate shares, saying the stock was “going way higher today.”
Another user suggested the stock could attempt to reach the $200 level during the session.
Oracle’s stock has risen 17% so far in 2025.
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