Oracle Forges New Path: TikTok Collaboration and Executive Evolution Drive Market Optimism
Oracle's Crucial Role in TikTok's U.S. Future
The White House officially acknowledged Oracle's participation in a new partnership, alongside venture capital firm Silver Lake, which will take charge of TikTok's American business. This arrangement ensures that a majority of the ownership and board control for the new U.S.-based entity will reside with American investors, while ByteDance, TikTok's Chinese parent company, will retain less than a 20% equity share.
Restructuring TikTok's Algorithmic Core for U.S. Security
A central component of this agreement involves replicating TikTok's proprietary recommendation algorithm and integrating it under American oversight. Oracle will serve as the primary security provider for this intricate process, ensuring that the algorithm undergoes continuous retraining and regular inspections by U.S. government officials to meet national security protocols and behavioral standards.
Government's Stance on the TikTok Transaction
Senior White House officials emphasized that the U.S. government will not seek any equity stake or board representation in the new TikTok venture. However, a fee might be levied for facilitating the deal. President Trump is expected to issue an executive order later in the week to formalize that the terms of this agreement adequately address America's national security imperatives.
Market Reaction and Financial Implications for Oracle
Industry analysts view Oracle's involvement as highly beneficial, particularly given the opportunity to continue hosting TikTok's extensive U.S. user data. This partnership contributed approximately 5% to Oracle Cloud Infrastructure (OCI)'s revenue in the 2025 fiscal year, as estimated by MorningStar analyst Luke Yang.
Oracle's Leadership Transition: A New Era Begins
In a separate announcement, Oracle disclosed the appointment of two new co-Chief Executive Officers: Clay Magouyrk, formerly the president of Oracle's AI cloud division, and Mike Sicilia, who led Oracle Industries. They will jointly succeed Safra Catz, who has transitioned to the role of Executive Vice Chair of the Board of Directors.
Safra Catz's Enduring Legacy and Future Role
Safra Catz, who held the CEO position since 2014, is widely recognized for her significant contributions to Oracle's growth. The Israeli-American billionaire and former investment banker will now lend her extensive expertise as Executive Vice Chair, guiding the company's strategic direction.