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Oracle's TikTok Stake Valued at $2 Billion
12 Mar
Summary
- Oracle's stake in TikTok's U.S. operations is valued at $2 billion.
- A deal was finalized by ByteDance for TikTok's U.S. business.
- U.S. and global investors collectively own 80.1% of the U.S. venture.
Oracle's investment in the U.S. operations of the popular social media platform TikTok is valued at approximately $2 billion. This figure emerged in a filing made on Wednesday, over a month after TikTok's parent company, ByteDance, concluded an agreement to form a majority-owned U.S. joint venture.
This strategic move by ByteDance was intended to circumvent a potential ban on TikTok's operations within the United States. The finalized deal stipulates that U.S. and global investors together will own 80.1% of the newly formed TikTok USDS Joint Venture LLC. ByteDance will retain a 19.9% ownership in this entity, signifying a significant shift in the platform's corporate structure for its American business.
The valuation highlights the substantial financial commitment and ownership structure established for TikTok's U.S. presence, following regulatory pressures. This arrangement ensures continued operation while addressing concerns about foreign ownership and data control.
