Oracle's TikTok stake sits at just over $2 billion, filing shows

In a significant update regarding its investments, Oracle has announced that its stake in the newly formed TikTok U.S. operations stands at approximately $2 billion. This disclosure came in Oracle's latest quarterly financial filing, which highlighted that its non-marketable debt investments and equity securities amounted to $2.2 billion for the period ending February 28. Notably, a substantial portion of these investments is linked to the TikTok USDS Joint Venture LLC. The national security concerns that led to this ownership change stem from a law enacted by former President Joe Biden in 2024, mandating China's ByteDance to divest TikTok's U.S. business or face a potential ban. This executive order followed earlier actions taken by President Donald Trump, which set the stage for the divestment. Vice President JD Vance has since stated that the overall valuation of the business reached $14 billion. In January, Adam Presser was appointed as the CEO of the TikTok USDS Joint Venture, which is primarily controlled by Oracle, Silver Lake, Abu Dhabi's MGX, and several other investors. Oracle holds a 15% share in the venture and maintains a seat on its board. Both Silver Lake and MGX also control 15% each, while ByteDance retains just under 20% of the U.S. operations. As part of this transition, Oracle is responsible for managing all U.S. user data for TikTok and has been designated as the security provider to monitor and ensure the safety of operations within the country. However, the transition has faced challenges. Earlier this year, TikTok reported issues with glitches and content disruptions, citing a power outage at one of its data centers as the cause. This was in response to speculation about potential political censorship on the platform. Recently, the joint venture acknowledged on social media that an issue with an Oracle data center was affecting the user experience on TikTok. The platform informed users that creators might temporarily experience delays in posting content while the issue was being resolved. Fortunately, just a few days later, TikTok announced that full service had been restored, reassuring its user base of continued operation stability.