Summary:
TikTok has created a U.S. entity and shifted parts of its American operations to U.S. investors led by Oracle. The new structure names Oracle, Silver Lake Management LLC, and Abu Dhabi-based MGX as managing investors; Shou Chew will keep global leadership and Adam Presser will run the U.S. venture. Oracle shares fell after the announcement, analysts trimmed growth forecasts amid concerns about its GPU-as-a-service business, and some firms still set $400 price targets.
TikTok has handed parts of its U.S. operations to American investors to keep the app active. The move establishes a U.S. entity controlled by three managing investors led by Oracle.
Silver Lake Management LLC and Abu Dhabi investor MGX join Oracle as managing investors. TikTok CEO Shou Chew retains global leadership and will hold a seat on the new board.
Adam Presser, former head of operations, trust and safety, will lead the U.S. venture as CEO. The arrangement aims to secure TikTok’s continued access to U.S. users and markets.
Oracle shares slipped after the confirmation, trading around $189.65. The stock fell about 6% in the past week and about 9% so far this year.
Analysts lowered growth expectations amid concerns about Oracle’s GPU-as-a-service business (Ed. note: forecasts were trimmed ahead of earnings), though Guggenheim and Jefferies still maintain $400 price targets.
