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.

TikTok has signed agreements with investors to establish a new U.S. joint venture, a move CEO Shou Chew said advances the company toward resolving a yearslong battle over its U.S. operations.

TikTok’s US joint venture gives Oracle and others a stake, but ByteDance will retain control of ads and e-commerce, a leaked memo shows.

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

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

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.

ByteDance and TikTok have signed "binding agreements" with three managing investors: Oracle Corporation, Silver Lake and Abu Dhabi-based MGX, to form a new TikTok U.S. joint venture named TikTok USDS Joint Venture LLC,

Oracle's Executive Chairman Larry Ellison, a long-time ally of Trump, is among the new investors. The deal ensures that TikTok will remain operational in the US, allowing "over 170 million Americans to continue discovering a world of endless possibilities," as stated in the memo.

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.