Oracle to retain TikTok cloud business under new deal; shares open over 5% higher

Oracle to retain TikTok cloud business under new deal; shares open over 5% higher

Oracle (ORCL.N) shares have surged more than 5% in premarket trading following reports that the company will retain the TikTok cloud business under a new deal between the United States and China. The news comes as the two countries have reached a preliminary agreement to switch TikTok to U.S.-controlled ownership, with a final confirmation expected in a Friday call between U.S. President Donald Trump and his Chinese counterpart Xi Jinping .

The deal, which includes multiple companies, is set to be finalized by a September 17 deadline that could have disrupted the popular social media app in the U.S. The White House, Oracle, TikTok, and the Chinese Embassy in Washington did not immediately respond to requests for comments .

Oracle has emerged as a top contender to buy TikTok, with the tech firm already storing TikTok’s American user data on its servers as part of Project Texas launched by TikTok in 2022. Oracle's relationship with TikTok, coupled with its close working with the Trump administration on AI initiatives, has positioned it as a leading candidate for the acquisition .

The preliminary deal could require approval by the Republican-controlled Congress, which passed a law in 2024 requiring divestiture due to fears that TikTok's U.S. user data could be accessed by the Chinese government. The deal, if approved, would allow Oracle to retain control over the cloud business while ByteDance, the parent company of TikTok, would retain some control over the app .

Oracle's shares have been on an upward trajectory this year, with a 81% increase as of September 12, 2025. The tech firm's shares soared last week after the company projected its cloud revenue to soar to $144 billion by its 2030 fiscal year .