TikTok and Oracle Form US Entity with Conservative Strategy

0xLostKey · 2026-01-31T12:08:33+00:00

To maintain its operational presence in the U.S., TikTok has established a new company structure backed by Oracle, Silver Lake, and MGX. This conservative strategy aims to ensure the platform's sustainability amid regulatory challenges, though market reactions remain cautious.

0xLostKey

2026-01-31 12:08:33

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In an effort to maintain its operational presence in the United States, TikTok has launched a new corporate structure supported by three key industry players: Oracle, Silver Lake, and MGX. This conservative approach is designed to ensure the sustainability of the platform’s services in the complex US market with challenging regulations.

Strategic Collaboration Involves Significant Investment

The new entity structure involves the three strategic investors bringing different expertise into the deal. Silver Lake brings experience in technology investment management, while MGX offers a global investor perspective, and Oracle positions itself as a major technology infrastructure partner. This combination reflects a long-term commitment to TikTok’s operational stability in the US region.

Conservative Market Response to Announcement

Market reactions show a variety of expectations regarding this deal. Oracle’s shares experienced selling pressure after the announcement, continuing a prior downward trend, although some analysts remain optimistic with ambitious price targets. Data from NS3.AI indicates that investor responses are still very limited and conservative in assessing the short-term impact of this collaboration.

Cloud GPU Challenges and Growth Projections

Oracle’s stock price weakness reflects the business challenges faced, particularly in the competitive cloud GPU segment. Conservative growth projections ahead of the next financial results announcement raise concerns among investors about the company’s business momentum. This uncertainty contributes to a market sentiment still full of question marks regarding the long-term value of the TikTok-Oracle deal.

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