Oracle Spent $2.2 Bn for 15% Stake in TikTok and Became Its American Landlord

Under the new ownership structure, US and global investors together hold an 80.1% stake in the joint venture, while ByteDance retains just under 20%

Oracle Corp
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Summary
Summary of this article
  • Oracle invested $2.2 billion and secured a 15% stake in TikTok's new American entity, TikTok USDS Joint Venture LLC.

  • This comes after the politically driven restructuring of TikTok following a 2024 US law.

  • Beyond ownership, Oracle hosts all US TikTok user data and acts as the platform's independent security provider, monitoring its American operations.

Oracle Corp has invested roughly $2.2 billion in TikTok's newly restructured American entity, TikTok USDS Joint Venture LLC, securing a 15% ownership stake in the platform, according to an exhange filing.

The deal is the result of a 2024 US national security law, signed by former President Joe Biden, that required TikTok's Chinese parent, ByteDance, to either sell its American operations or face a nationwide ban. President Donald Trump, later approved the divestiture through an executive order, clearing the way for the restructuring.

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Under the new ownership structure, US and global investors together hold an 80.1% stake in the joint venture, while ByteDance retains just under 20%.

Alongside Oracle, private equity firm Silver Lake and Abu Dhabi-based investment firm MGX each hold roughly 15% stakes. Adam Presser was appointed CEO of the joint venture in January.

Oracle's role goes beyond simply owning a slice of TikTok. The tech giant also hosts all of TikTok's US user data and acts as the platform's independent security provider, responsible for monitoring its American operations, making it both a financial backer and a digital gatekeeper.

The transition has not been entirely smooth. TikTok's US operations previously reported posting delays and service disruptions linked to issues at an Oracle data centre, though the company said those problems have since been resolved, according to multiple reports.

The restructuring marks a significant moment for TikTok, which now operates in the US under a structure designed to address Washington's long-standing concerns about Chinese access to American user data.

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