Overview
- Oracle shares recovered after reports that TikTok signed binding agreements for a U.S. joint venture that includes Oracle, which is set to provide cloud infrastructure and data security.
- Earlier in the week, the Financial Times reported Blue Owl won’t back a roughly $10 billion Michigan data‑center deal; Oracle said its developer partner selected a different equity investor and that talks are on schedule.
- Follow‑on reporting says Blackstone is in discussions to provide equity and Bank of America is arranging a large debt package for the Michigan project, though these financing talks remain unconfirmed.
- Credit stress around Oracle has intensified, with CDS spreads reaching their highest levels since 2009 and bonds trading at riskier levels as investors focus on leverage, lease obligations and cash needs.
- Policy uncertainty in Michigan, including debate over data‑center tax incentives, has been cited as a factor weighing on financing appetite, as markets also debate Oracle’s exposure to large customers such as OpenAI.