Trump Administration Expected to Receive $10bn TikTok Deal Fee

Donald Trump Vs Tik Tok – (Web Desk) – A report by The Wall Street Journal says the administration of Donald Trump could receive about $10 billion in fees from investors involved in the recent deal for TikTok’s US business. The report, published on Friday, cited people familiar with the agreement.

The deal was finalized in January by TikTok’s Chinese parent company ByteDance. It created a new joint venture that will be mostly owned by American investors. The move was meant to avoid a possible US ban on the popular short video app, which is used by more than 200 million people in the United States.

The new company, called TikTok USDS Joint Venture LLC, will manage US user data, apps, and algorithms. It plans to protect this data through stronger privacy and cybersecurity systems. Only limited details about the sale have been made public so far.

US Vice President JD Vance said last September that the new US company could be valued at about $14 billion.

According to the report, the fee is part of the wider agreement that allowed investors close to the administration to take control of TikTok’s US operations from ByteDance. This payment is separate from the money already invested to create the new company.

Investors such as Oracle, Silver Lake, and Abu Dhabi based MGX are among the backers. They reportedly paid about $2.5 billion to the US Treasury when the deal was completed. More payments will follow until the total reaches $10 billion.

TikTok and the White House did not immediately reply to requests for comment from Reuters.

Officials in the administration say the fee is justified. They argue that Trump helped save TikTok’s US operations and played a key role in talks with China. The goal was to finish the deal while addressing security concerns raised by US lawmakers.

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Earlier this month, Trump and US Attorney General Pam Bondi were also sued by retail investors linked to two rival social media platforms. The lawsuit asks the court to reverse the president’s approval of the deal between ByteDance and the new US based company.