TikTok ban's potential impact on Oracle

Oracle stated in its annual report that the US government's ban on TikTok may harm its business, leading to a serious negative impact on Oracle's revenue and profits as it provides cloud infrastructure for TikTok, which has over 150 million US users.

TikTok ban

The US government has long been concerned about TikTok user data flowing to China. In April this year, President Biden signed a bill requiring ByteDance to sell TikTok, otherwise TikTok will be disabled within 9 to 12 months.

The Texas Plan and Litigation

TikTok is promoting the "Texas Plan" to ensure that US user data is not leaked to China, with Oracle responsible for cloud infrastructure operation and application compilation. This year, TikTok filed a lawsuit against the relevant bill, claiming that it violated freedom of speech.

Potential acquirers and financial implications

Real estate investor Frank McCurt and former Treasury Secretary Steven Mnuchin have expressed interest in acquiring TikTok, but a deal has not yet been reached.

Oracle has not disclosed its financial relationship with TikTok. Evercore analysts estimate that 3% to 5% of TikTok's annual sales in the United States are spent on cloud infrastructure, approximately $480 million to $800 million. Oracle's cloud infrastructure revenue reached $6.9 billion in the fiscal year ending May 31.