Oracle (ORCL +4.27%) stock jumped 3% through 10:40 a.m. ET Monday after publication of an internal memo to employees from TikTok CEO Shou Chew -- confirming the TikTok U.S. deal is done.
Oracle, alongside private equity firm Silver Lake and Abu Dhabi-based MGX, now collectively owns 45% of TikTok U.S.
Non-Chinese ownership totals 80%, with 20% of the new joint venture remaining under control of Chinese parent company ByteDance.
Image source: Getty Images.
What does the TikTok memo say?
As Business Insider reported today, the memo (circulated on Thursday) confirms that "TikTok USDS Joint Venture LLC has been established in compliance with the Executive Order signed by President Trump on September 25, 2025."
The joint venture is "majority American owned" and "will operate under defined safeguards that protect national security through comprehensive data protections, algorithm security, content moderation, and software assurances for US users." The Chinese side of the joint venture appears to be a ByteDance subsidiary called "TT Commerce & Global Services LLC."
The company's board of directors has appointed Adam Presser to run the JV. According to his LinkedIn profile, Mr. Presser has been with TikTok for nearly 4 years and was formerly head of Warner Bros. Entertainment's subsidiary, WarnerMedia China, Austria & New Zealand.
NYSE: ORCL
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What does this mean for Oracle stock?
At this early date, it's unclear how good this news is for Oracle -- although the fact that Oracle has been actively pursuing an ownership stake in TikTok U.S. for the last few years suggests that Oracle, at least, will think this is good news.
At a valuation of 33 times trailing earnings, and a forecast growth rate of 23%, Oracle stock doesn't look too expensive right now. Do be aware, though, that Oracle carries $112 billion in net debt. On an enterprise value-to-earnings ratio basis, this raises the valuation significantly.
