Oracle-Led Consortium to Acquire 80% Stake in TikTok's U.S. Operations

2025-09-17 companies

New York, Wednesday, 17 September 2025.
Oracle, Silver Lake, and Andreessen Horowitz are set to control TikTok’s U.S. operations amid data security concerns, marking a pivotal moment in U.S.-China tech relations.

Background of the Acquisition

The acquisition of TikTok’s U.S. operations by a consortium led by Oracle (ORCL.N), Silver Lake, and Andreessen Horowitz marks a significant development in the ongoing negotiations between the U.S. and China. This move is aimed at addressing the regulatory concerns over TikTok’s data security practices that have been a point of contention for nearly a year. The framework for this deal was announced on 16 September 2025, providing a potential resolution to the scrutiny TikTok faces regarding its management of U.S. user data [1][4][6].

Structure of the Deal

Under the terms of the agreement, U.S. investors will hold an 80% stake in the newly formed company that will manage TikTok’s U.S. operations, while ByteDance, the parent company, will retain a 19.9% ownership. This structure aims to alleviate national security concerns by ensuring that the majority of the company’s control is in American hands. Oracle has been designated to handle U.S. user data at its facilities in Texas, reinforcing the commitment to data sovereignty [1][4].

Strategic Implications

The deal is seen as a strategic maneuver in the larger U.S.-China tech rivalry, emphasizing U.S. tech sovereignty and cloud adoption. Oracle’s involvement, particularly through its Project Texas initiative, aligns with national security priorities by ensuring that sensitive data remains under American jurisdiction. This acquisition could set a precedent for future transactions involving foreign-owned platforms and their data management [6][7].

Market Reaction and Future Prospects

Following the announcement of the potential deal, Oracle’s stock experienced a notable increase, reflecting investor optimism about the company’s growing influence in the tech and cloud service sectors. This acquisition not only bolsters Oracle’s position but also highlights the significance of data security and sovereignty in global tech operations. The deal is expected to close by mid-December 2025, with ongoing discussions between U.S. and Chinese officials to finalize the terms [5][8].

Sources

TikTok acquisition Oracle consortium