Oracle stock jumps 6% on TikTok takeover role

Oracle stock rose 6% on Monday after the White House confirmed the company’s central role in the takeover of TikTok’s U.S. operations and announced a major shakeup in its top leadership.

The update came just days after President Donald Trump said he was finalizing the deal, and it marks another step in Larry Ellison’s growing influence inside the Trump administration.

Oracle’s involvement is part of a new joint venture that gives American investors control over the video-sharing app’s U.S. division, with Ellison’s firm and private equity group Silver Lake leading the charge. This is according to details confirmed Monday by the White House and reported by Yahoo Finance.

The structure of the deal moves TikTok’s U.S. assets under a new American company where Oracle and Silver Lake will hold the majority stake and board seats.

China-based ByteDance, TikTok’s current owner, will retain under 20% of the new entity. The joint venture will also take control of TikTok’s algorithm by copying it, retraining it, and placing it under U.S. authority. A senior White House official said, “We feel [this] meets every security requirement that we need for the algorithm to make sure it’s behaving appropriately.”

Oracle will serve as the security provider for the group, tasked with overseeing the data, code, and regular inspections by government officials.

Oracle takes over security while ByteDance gets pushed aside

Clay Magouyrk, who now serves as one of Oracle’s new co-CEOs, was already managing the company’s cloud business, where the app’s user data is currently stored.

That cloud deal alone brought in around 5% of revenue for Oracle Cloud Infrastructure during its 2025 fiscal year, based on estimates from MorningStar’s Luke Yang. The arrangement is expected to continue under the new ownership model.

The U.S. government has made clear it won’t take a board seat, a “golden share,” or any equity stake in the joint venture. However, officials are considering a one-time fee for facilitating the transaction.

Trump is expected to sign an executive order this week declaring the deal a “qualified divestiture” under the ban-or-sale law passed last year. He also plans to extend the enforcement pause for another 120 days to allow final regulatory steps and paperwork to be completed.

ByteDance will simultaneously sign an agreement with the new American investors outlining the full framework. Trump extended the original ban until December 16, giving enough time for the entire deal to be completed early next year.

The White House said the agreement still requires approval from Chinese regulators, but officials expect no major problems. The deal also follows a recent call between Trump and Chinese President Xi Jinping.

“We are 100% confident that a deal is done,” said White House Press Secretary Karoline Leavitt over the weekend. She added that signatures are expected “in the coming days.”

Oracle installs two new CEOs while insiders cash out

As all this happens, Oracle quietly replaced its CEO, Safra Catz, on Monday behind the scenes. Safra had served in the role since 2014 and will now take a new position as executive vice chair of the board.

Oracle appointed Clay Magouyrk and Mike Sicilia as its new co-CEOs. Clay previously led Oracle’s AI cloud business, and Mike ran Oracle Industries, both were promoted to their former president roles back in June.

Insider trading among Oracle insiders also picked up as director William Parrett sold 11,500 shares between September 15 and 19 at a price of $306 each, totaling about $3.52 million, with the remaining stake now at 27,075 shares.

The full list of investors in the TikTok venture hasn’t been disclosed yet, but Oracle and Silver Lake are confirmed to be leading it. ByteDance’s minority stake means it’ll have no real say in the joint venture.

The deal marks the likely end of years of debate in Washington over whether TikTok should be allowed to operate in the U.S. under Chinese ownership. With this new structure, that question is finally getting a clear answer—and Oracle is now at the heart of it.

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