Oracle disclosed that it values its investment equity in the joint venture handling TikTok's U.S. business at about $2 billion (2.952 trillion won). After the U.S. government's divestment demand, the investor consortium-centered restructuring of TikTok's U.S. business was detailed for the first time through a financial report.
According to CNBC on the 11th local time, Oracle said in its quarterly financial report for the period ended Feb. 28 that it recorded $2.2 billion in nonmarketable debt investments and equity securities and related asset. The company explained that a substantial portion of this is related to its investment in the joint venture "TikTok USDS," which oversees TikTok's U.S. business.
The sale of TikTok's U.S. business moved forward amid national security controversy. In 2024, the U.S. government implemented a law enabling a ban on service in the United States if China's ByteDance Ltd. does not sell TikTok's U.S. business.
Later, in September of the same year, President Donald Trump signed an executive order approving the sale of ByteDance Ltd.'s equity, advancing the establishment of the joint venture. At the time, the U.S. government valued TikTok's U.S. business at about $14 billion.
Under the current joint venture structure, Oracle holds 15% equity and has secured a board seat. Silver Lake and Abu Dhabi investment firm MGX each hold 15% equity, and ByteDance Ltd. maintains less than 20% equity. In January this year, Adam Presser was appointed chief executive officer (CEO) of the joint venture.
Since the launch of the joint venture, Oracle has been responsible for storing TikTok's U.S. user data and handling security operations. According to a White House memo, Oracle also independently monitors the security and safety of TikTok's overall service operations in the United States.