Oracle shares rose 3% on news of a preliminary US-China TikTok deal, with the company seen as a leading contender.
Oracle rises on news of US-China TikTok deal
Oracle shares (ORCL) surged over 3% on Monday after reports surfaced that the U.S. and China had reached a preliminary understanding regarding TikTok, as part of broader trade discussions in Madrid.
TikTok Deal Boosts Investor Optimism
U.S. Treasury Secretary Scott Bessant confirmed that both sides have agreed on a framework for TikTok’s future, with the finer details expected to be ironed out during a meeting between President Donald Trump and Chinese President Xi Jinping on Friday.
Although no final buyer has been officially confirmed, Oracle is widely viewed as the frontrunner. Its stock initially jumped 5% in premarket trading following a post from Trump on Truth Social, before settling at a 3% gain by market close.
“Big US-China trade meeting in Europe went VERY SUCCESSFUL! A deal has been reached for a ‘certain’ company that the youth of our country have been dying to save,” Trump posted.
Time Running Out for ByteDance
TikTok is under pressure to sell a controlling stake to a U.S.-based or allied investor by September 17 to avoid a potential ban in the United States. Trump has already extended the deadline several times and indicated that another extension is possible.
Why Oracle Is the Leading Contender
Oracle currently handles TikTok’s U.S. user data through “Project Texas,” a data localization initiative that keeps American user information on Oracle servers. Additionally, the company is closely aligned with the Trump administration’s push for domestic AI development.
Back in January, Oracle founder Larry Ellison joined forces with OpenAI CEO Sam Altman, SoftBank’s Masayoshi Son, and President Trump to launch Project Stargate — a $500 billion initiative to build AI-focused data centers across the U.S.
Other potential buyers
In addition to Oracle, a consortium led by Frank McCourt Jr., Microsoft, Mr. Beast, and startup Perplexity AI have expressed interest in TikTok.
Despite the competition, Oracle has the best chance because it is already integrated into TikTok’s critical processes in the US.
