Oracle stock jumps 7% as cloud provider joins investor group to run TikTok's U.S. business

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Oracle

’s stock jumped 7% Friday after the cloud provider joined a group of investors slated to lead TikTok’s U.S. operations.

In a memo to employees Thursday, CEO Shou Zi Chew said the social media company’s U.S. division will be run by a joint venture that includes Oracle, Silver Lake, and Abu Dhabi-based MGX. The deal is expected to close on Jan. 22.

The agreement prevents the popular social platform from getting banned after President Joe Biden signed a law requiring a divestiture of the company’s U.S. unit due to national security concerns.