President Donald Trump has stated that he and Chinese President Xi Jinping have approved a framework for U.S. investors to take control of TikTok’s operations in America. The deal still needs final details, but it marks a breakthrough after months of talks.
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Under the plan, a new company will run TikTok in the U.S. The ownership split would hand about 80% to American investors, while ByteDance, the Chinese parent, would keep less than 20%. Among the new investors are Oracle (ORCL) and Silver Lake, while existing holders like Susquehanna International, KKR (KKR), and General Atlantic will keep a combined 30%. The U.S. government also expects a multibillion-dollar fee from the deal.
In the meantime, ORCL shares continue their strong 2025 with another 4% rise in Friday’s trading, closing at $308.66.
Data, Algorithms, and Security
A key part of the agreement covers how TikTok’s technology will be handled. Oracle will continue to manage U.S. user data on its cloud systems, building on its current work with TikTok. The algorithms will still be licensed from ByteDance, but they must be retrained and operated in the U.S. outside of ByteDance’s control. This is meant to address national security concerns tied to the app’s 170 million American users.
Meanwhile, the exact process for algorithm updates remains a question. Lawmakers in Washington are seeking clear evidence that China cannot use TikTok to influence content or gain access to user information.
Political and Market Impact
The announcement came after Trump and Xi spoke on a call that also covered trade, fentanyl, and the war in Ukraine. The two leaders will meet face to face at the Asia-Pacific Economic Cooperation summit in South Korea this fall. Trump has extended the deadline for the deal to mid-December, giving more time to finalize terms.
For investors, the outcome will set a model for how Washington deals with Chinese tech firms going forward. It also puts major U.S. players like Oracle in a stronger position with a platform that remains popular with younger users. At the same time, the unresolved issues on security and control could keep pressure on the deal before it is signed.
Is Oracle a Good Stock to Buy?
As Oracle plays a key role in any potential agreement for TikTok, let’s see what the Street’s analyst sentiment is over the stock. On the Street, Oracle has the backing of the analysts with a Strong Buy consensus rating. The average ORCL stock price target is $340.75, implying a 10.40% upside from the current price.
