Oracle (NYSE: ORCL) shares are jumping 5% in premarket trading this morning, following news that TikTok’s parent company ByteDance signed binding agreements to form a U.S. joint venture majority-owned by American investors.

TikTok has remained available for Americans through a series of enforcement reprieves from a 2024 law signed by President Joe Biden, which requires ByteDance divest its U.S. TikTok ownership below 20%. Trump has delayed the law on four separate occasions.

ByteDance, the Chinese owner of TikTok, has signed agreements to transfer control of TikTok's US operations to investors, including Oracle, to evade a US ban. This move ends a long period of uncertainty,

Shares of Oracle Corporation are trading higher Friday after reports confirmed the technology company will be one of TikTok's new owners.

In a memo to staff reviewed by Reuters, TikTok CEO Shou Zi Chew confirmed that all US data “will be stored in a trusted and secure cloud environment in the United States run by Oracle,” with Oracle ultimately responsible for safeguarding US data.

ByteDance Ltd. is on track for profits of roughly $50 billion in 2025, capping a record year for a Chinese social media leader making major inroads into e-commerce and new markets.