The Trump administration is set to receive a reported $10 billion fee from a deal involving TikTok’s US business after investors took control of the app’s US operations, according to The Wall Street Journal.
The report said the payment is tied to the recently completed deal involving TikTok’s Chinese parent company, ByteDance, and a new majority American-owned joint venture. ByteDance finalised the deal in January to avoid a US ban on TikTok, which is used by more than 200 million Americans, according to the source text.
Under the arrangement, TikTok USDS Joint Venture LLC will handle US user data, apps, and algorithms in accordance with privacy and cybersecurity measures. However, only limited details about the divestiture were disclosed.
This structure was designed to address long-running national security concerns raised by US lawmakers.
Who Is Paying The TikTok Deal Fee?
The Wall Street Journal reported that, as part of the agreement, investor-friendly policies with the administration enabled it to gain control of TikTok’s US operations from ByteDance.
Those investors include Oracle, Silver Lake, Abu Dhabi’s MGX, and other backers. The report said they paid about $2.5 billion to the US Treasury Department when the deal closed and are expected to make further payments until the total reaches about $10 billion.
Read: ByteDance Seals US-Owned TikTok Deal to Secure Data and Avoid Ban
Vice President JD Vance had said in September that the new US company would be valued at around $14 billion.
Why Officials Say The Payment Is Justified
According to the report, administration officials said the fee is justified because of President Donald Trump’s role in keeping TikTok’s US operations alive and helping guide negotiations with China.
They also cited the administration’s efforts to complete the deal while addressing lawmakers’ national security concerns. Even so, TikTok and the White House did not immediately respond to Reuters requests for comment.
The report comes as Trump and US Attorney General Pam Bondi were sued earlier this month by retail investors in two TikTok rivals.
The lawsuit seeks to reverse the US president’s approval of ByteDance’s deal to create a majority American-owned joint venture for TikTok’s US business.
That legal challenge adds another layer of scrutiny to a deal already shaped by politics, regulation, and national security debate.
