The deal is expected to close next month, with Oracle, Silver Lake and MGX owning 45% of TikTok’s U.S. business.

The deal comes more than a year after Congress passed a law that forced its owner ByteDance to divest its US operations or face a ban.

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 agreed to sell its U.S. operations to an investment group that includes Oracle, Silver Lake, and UAE-based company MGX, reports Axios. The "TikTok USDS Joint Venture LLC" that includes the three companies will own 45 percent of TikTok,

TikTok's new US joint venture will hand over national-security related tasks to its partners, while ByteDance holds onto key business lines.

Oracle shares jumped 6% in pre-market on Friday as TikTok's U.S. agreement helped calm AI bubble fears after a volatile macro week.

TikTok’s long-delayed plan to separate from Chinese parent ByteDance was put in motion Thursday when the video sharing sensation said it’s being bought by a group of buyers led by Oracle. Chinese regulators have yet to say whether they’ll approve the transaction.