Oracle stock rises as White House names software giant in TikTok deal; company announces CEO shakeup

Oracle (ORCL) stock rose 3% Monday as the White House confirmed that the software giant is part of a consortium of investors that will control TikTok’s US operations. The company also separately announced a CEO shakeup.

On Monday morning, a senior White House official confirmed the details of the TikTok deal to reporters, including most notably that the deal will move TikTok US operations into a new joint venture based in the United States, with American investors in control with a majority of the ownership stake and of the board.

Oracle and Venture Private Equity firm Silver Lake are set to lead the new venture with China-based ByteDance holding less than 20% of the equity in final venture.

The deal also includes a plan to “copy” the valuable TikTok recommendation algorithm and then move it under US control where it will be “retrained” — according to the White House — under the control of this joint venture.

Oracle will be the new group’s security provider and will oversee this complicated side of the deal. The algorithm will be regularly inspected by US government officials.

“We feel [this] meets every security requirement that we need for the algorithm to make sure it’s behaving appropriately,” offered a senior White House official.

The US government has no plans to take equity of a “golden share” or a board seat — the official added — but might charge a fee for facilitating the deal. President Trump — who has touted the deal repeatedly and said Sunday the final list of investors would be “really great people, very prominent people” — is now set to sign an executive order later this week to declare that the terms of this deal meet America’s national security needs.

Multiple outlets have reported previously that Oracle would be part of a consortium of investors that will control TikTok’s US operations.

Analysts have told Yahoo Finance that Oracle’s involvement in such a deal is seen as a positive for the software company because it allows it to continue its partnership with TikTok, storing the app’s American user data. That deal accounted for 5% of the revenue seen by OCI in its 2025 fiscal year, MorningStar analyst Luke Yang estimated.

Oracle separately said Monday that it has appointed two new co-CEOs to replace its current chief executive Safra Catz. The development came

The two new chief executives are Clay Magouyrk, who was the president of the company’s AI cloud business, Oracle Cloud Infrastructure (OCI), and Mike Sicilia, who was the president of Oracle Industries. The two were named presidents of those Oracle segments in June.