Oracle soars after TikTok signs agreement to sell its US operations to consortium that includes the cloud computing giant
Oracle's stock surged after TikTok's owner, ByteDance, agreed to sell its US operations to a consortium including Oracle, Silver Lake, and MGX. The deal values TikTok's US operations at $14 billion, potentially boosting Oracle's cloud business and enhancing its relationship with TikTok.
Oracle soared in after-hours trading on Thursday on news that TikTok owner ByteDance signed contracts with the three major investors who are leading a joint venture to take over the short-form video app’s US operations, per a widely-cited memo from TikTok CEO Shou Zi Chew to employees.
The trio of parties in that consortium are the cloud computing company, private equity firm Silver Lake, and MGX, a tech investment company backed by Abu Dhabi.
Per reports, the structure of the deal is roughly aligned with what was outlined in September, which valued TikTok’s US operations at about $14 billion. Relative to some less-popular peers, that seems like a pretty low price tag, so picking up doomscrolling on a discount (or if you prefer, short-term video browsing on a budget) looks to be a worthy catalyst for the bump in the beaten-down hyperscaler’s shares. And that’s even before mentioning the potential for Oracle’s cloud business to enhance its preexisting relationship with TikTok.
