Summary:
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Oracle stock rises after agreement on TikTok’s future; deal aims to prevent U.S. ban. Oracle seen as top contender.
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If Oracle wins, TikTok avoids shutdown; deal could expand Oracle’s role in security and privacy oversight.
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Long battle over TikTok’s future nears resolution; final terms and control of data remain key questions.
Oracle stock rose more than 3% Monday after U.S. and Chinese officials agreed on a framework for TikTok’s future during trade talks in Madrid. Treasury Secretary Scott Bessent confirmed that both sides settled on a plan, with President Donald Trump and President Xi Jinping expected to finalize it later this week.
The deal is meant to prevent a U.S. ban set to take effect Sept. 17 unless TikTok is sold to a U.S. or allied company. While no buyer has been named, Oracle has long been seen as a top contender. The company already stores U.S. TikTok user data through Project Texas, a security program launched in 2022.
Shares of Oracle briefly spiked 5% in early trading after Trump hinted at the progress on Truth Social, later closing the day up 3.41% at $302.14.
ORACLE HAS BEEN CHOSEN AS THE WINNER IN THE BIDDING FOR TIKTOK’S US OPERATIONS – WSJ pic.twitter.com/xipbk2Ovg4
— litquidity (@litcapital) September 13, 2020
What it means for TikTok
If Oracle wins the contract, TikTok would avoid a shutdown and keep its 170 million U.S. users online. Analysts say the deal could expand Oracle’s role from simply hosting data to taking on oversight of how TikTok manages security and user privacy. Other bidders, including Microsoft, billionaire Frank McCourt Jr., and even YouTuber MrBeast, have also expressed interest.
A long-running fight
This is the latest twist in a years-long battle over TikTok’s future. U.S. officials have warned since 2020 that the app could expose Americans’ data to Beijing. Attempts at forced sales, bans, and delays have followed across two administrations, leaving creators and advertisers uncertain.
Now, with a framework in place, TikTok’s fate is closer to resolution — but the final terms, including who will control its data and algorithm, remain key questions.
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Monday’s framework pushes TikTok closer to a U.S.-acceptable structure and gives Oracle a plausible path to a larger role. The deal is not done, and the final contours matter, but for now, markets are trading on the idea that Washington and Beijing see an off-ramp from a ban that has loomed for more than a year.
