Oracle to Operate TikTok US Algorithm as Takeover Deal Nears Completion

Oracle Set to Control TikTok’s U.S. Algorithm as American-Led Deal Nears Completion

  • A potential agreement is nearing that would move control of TikTok’s U.S. operations to an American-led group.
  • Oracle Corp (ORCL) is expected to operate TikTok’s algorithm in the United States as part of the arrangement.
  • The planned ownership group would have a majority of American investors and board members, according to a senior White House official.
  • “We are 100% confident that a deal is done,” said White House Press Secretary Karoline Leavitt, who predicted a signing in the next few days.
  • Oracle shares have risen over 80% in 2024, with analysts setting price targets between $308 and $375 per share.

A deal is close that would shift control of TikTok’s United States operations to a new joint venture primarily owned by American investors. As part of the plan, Oracle Corp (ORCL) would manage TikTok’s algorithm inside the country. The new entity would be headquartered in the U.S. and have a board of directors made up mostly of Americans, according to a senior White House official.

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White House Press Secretary Karoline Leavitt stated on Saturday, “We are 100% confident that a deal is done,” and indicated that the agreement could be signed within days. The prospective deal includes transferring both U.S. operational control and the technology behind TikTok’s algorithm to the new American group.

Shares of Oracle rose 28% over the past month and are up more than 80% for the year. The company has focused on advances in Artificial Intelligence, offering generative and predictive AI tools. Oracle collaborates with firms like OpenAI.com”>OpenAI for infrastructure and supports the creation of tailored AI solutions. The company is Hosting Oracle AI World and competing closely with NVIDIA in the AI market, according to stock analysts.

Market analysts from Guggenheim and TD Cowen set recent price targets for Oracle stock at $375, while Mizuho predicted $350 and Bernstein gave a $308 target with an Outperform rating. According to analyst Keith Weiss from Morgan Stanley, “Oracle’s Q1 represents not only the biggest bookings number we’ve ever seen in software, but a fundamental shift in the business model towards Data Center Operator.”

For additional finance news, see this update on Amazon-amzn-receives-wall-street-upgrade-280-inbound-114223467.html”>Amazon (AMZN) Receives Wall Street Upgrade.

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