Trump administration to receive $10 billion fee from TikTok deal
The administration of Donald Trump is expected to receive about $10 billion in fees linked to the deal that transferred control of TikTok’s U.S. operations to a new American-led entity.
The agreement stems from negotiations between U.S. officials and TikTok’s Chinese parent company, ByteDance, aimed at addressing national security concerns surrounding the popular video-sharing app, News.Az reports, citing Reuters.
TikTok, which has more than 200 million users in the United States, faced the threat of a nationwide ban unless its U.S. business was restructured.
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The deal finalized earlier this year created a new entity called TikTok USDS Joint Venture LLC, which will manage the app’s U.S. operations.
According to the report, the new company is designed to safeguard American user data and algorithms through enhanced data privacy and cybersecurity protections.
Under the agreement, investors aligned with the administration took control of TikTok’s U.S. operations from ByteDance.
Several major investors helped finance the transaction, including tech giant Oracle, private equity firm Silver Lake and Abu Dhabi-based investment group MGX.
The report said investors initially paid about $2.5 billion to the U.S. Treasury Department when the deal closed. Additional payments are expected over time until the total reaches $10 billion.
Officials within the administration reportedly argue that the fee reflects the government’s role in negotiating the agreement and preventing a potential ban on the platform.
Earlier in the negotiations, U.S. Vice President JD Vance said the newly created U.S. company could be valued at around $14 billion.
The restructuring was designed to address concerns from U.S. lawmakers who argued that TikTok’s ownership by ByteDance could expose American user data to Chinese authorities.
Despite the agreement, the deal is already facing legal scrutiny.
Earlier this month, retail investors linked to two TikTok rival social media platforms filed a lawsuit against President Trump and U.S. Attorney General Pam Bondi, seeking to overturn the approval of the restructuring.
TikTok and the White House did not immediately respond to requests for comment on the report.
The deal remains one of the most closely watched technology and national security negotiations involving a social media platform in recent years.
By Aysel Mammadzada
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