By Nisha Gopalan

Anna Moneymaker / Getty Images. Oracle co-founder Larry Ellison was briefly the richest person in the world after his company’s shares surged earlier this month

KEY TAKEAWAYS

• Oracle shares are surging in premarket trading Tuesday on a report that the software firm is among a consortium of companies that would let Chinese-owned TikTok to continue operating in the U.S.—if a “framework deal" between Beijing and Washington is finalized.

• TikTok is facing a ban in the U.S. around its Chinese ownership.

• According to CBS, which cited sources with knowledge of the negotiations, the final deal over TikTok will include multiple companies, though it wasn't clear what role the app's Chinese parent ByteDance will have or who would own TikTok's recommendation algorithm.
  

Oracle (ORCL) shares are surging in premarket trading Tuesday on a report that the software firm is among a consortium of companies that would let Chinese-owned TikTok to continue operating in the U.S.—if a “framework deal" between Beijing and Washington is finalized.

According to CBS, which cited sources with knowledge of the negotiations, the final deal over TikTok will include multiple companies. It wasn’t immediately clear who will control TikTok’s recommendation algorithm or what role parent company ByteDance will play, the report said.

Oracle shares, which entered Tuesday up 80%, are rising 5% in premarket trading. TikTok parent ByteDance has until Wednesday to agree to sell the social media platform to a U.S.-based owner or be banned in the country, unless President Donald Trump extends the deadline. Oracle co-founder Larry Ellison has close ties to Trump and his software firm has frequently been reported as a potential bidder for the social media app.

The CBS report comes a day after Treasury Secretary Scott Bessent said the U.S. has reached a “framework for a TikTok deal" following two days of trade talks between Beijing and Washington in Madrid. Trump also suggested a deal had been reached on Monday.

Oracle shares soared earlier this month after it reported a substantial backlog that suggested the AI spending boom has legs. The surge lifted Ellison's net worth above that of Elon Musk, according to Bloomberg, for a while making the 81-year-old database pioneer the richest person in the world.

Source article: Investopedia