Oracle Corporation (NYSE:ORCL) surged 5% in premarket trading Tuesday following a CBS News report that the company is part of a group of firms positioned to help secure TikTok’s continued presence in the United States, should Washington and Beijing finalize a framework agreement.
Details of the potential arrangement remain uncertain, with sources telling CBS that multiple companies are likely to be involved. The exact role of TikTok’s parent company, ByteDance, has not yet been clarified.
The update comes shortly after U.S. officials confirmed they had reached commercial terms with Beijing during high-level talks in Madrid. On Monday, President Donald Trump fueled speculation further, writing on social media that “a deal was also reached on a ‘certain’ company that young people in our country very much want to save.”
Investor enthusiasm over Oracle’s possible role in the TikTok deal added to gains already sparked by the company’s upbeat revenue outlook, which drove its stock to fresh record highs last week.
TikTok’s future in the U.S. has been clouded by a congressional ban tied to national security worries about user data collection. While the app was originally slated to shut down its American operations in January, Trump issued executive orders delaying the ban and has signaled he may do so again if a deal with China is not finalized.
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