Oracle, the US enterprise software and cloud computing group, has disclosed a $2.2 billion investment in the joint venture created to manage TikTok's US operations, with the company also taking on a formal role as security provider for the platform's American user data.
The investment, described in a regulatory filing as "non-marketable debt investments and equity securities and related instruments," is attributed in the substantial majority to TikTok USDS Joint Venture LLC, the entity established to bring TikTok's US business under domestic ownership.
US and global investors collectively hold an 80.1% stake in the joint venture, with TikTok's Chinese parent company ByteDance retaining the remaining 19.9%, according to Reuters.
Oracle holds a 15% stake alongside fellow managing investors Silver Lake, the private equity firm, and MGX, the Abu Dhabi-based technology investment vehicle, each of which also controls 15%.
Oracle holds a board seat in the new US entity and, under a White House memo, has been designated as the independent security provider responsible for monitoring and assuring the safety of all operations conducted in the United States, CNBC reported.
The arrangement also places US user data in Oracle's custody.
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The joint venture acknowledged a disruption to TikTok's US user experience linked to an Oracle data centre outage, posting on X that service had been fully restored three days after the issue emerged.
Separately, Oracle reported third-quarter revenue of $17.19 billion, beating analyst projections compiled by financial data group LSEG, with the company citing an anticipated boom in AI data centre demand as a driver of continued outperformance.
The recap
- Oracle reports stake in TikTok US venture valued at $2.2 billion
- Oracle holds a 15% stake and a seat on the board
- U.S. law required ByteDance to divest TikTok US operations or face ban
