Trump Administration Set to Receive $10 Billion From TikTok US Deal

The Trump administration is poised to receive $10 billion from investors as part of a deal transferring TikTok’s U.S. Operations to American ownership, according to reports from the New York Times and Benzinga.

Deal Details and Payment Schedule

The payments follow an initial $2.5 billion payment to the Treasury when the deal closed in January 2026. Investors including Oracle, Silver Lake, and Abu Dhabi’s MGX are responsible for the payments, which will continue until the total reaches $10 billion. National Today reports that this fee is nearly unprecedented for a government helping arrange a private transaction.

Background and National Security Concerns

The move comes amid bipartisan concerns that TikTok’s Chinese ownership posed a national security risk due to the platform’s popularity among U.S. Users. The deal was required under a law passed during Trump’s first term that forced ByteDance to reduce its ownership of TikTok’s U.S. Operations or face a ban. The new U.S. Entity, TikTok USDS Joint Venture LLC, manages U.S. User data, apps, and algorithms. ByteDance still owns nearly 20% of the new entity and licenses its algorithm to it.

Trump’s Role and Previous Actions

President Trump previously described the arrangement as a “tremendous fee-plus,” highlighting the government’s role in the deal. He initially pushed to ban TikTok over national security concerns but reversed course in 2024, joining the platform to reach voters. At the executive order signing in September, he stated, “It’s owned by Americans, and very sophisticated Americans. This is going to be American operated all the way.”

Legal Challenges

Earlier this month, President Trump and Attorney General Pam Bondi were sued by investors Zhaocheng Anthony Tan and Garrett Reid, who claimed the deal was unlawful and caused financial harm to them as investors in competing companies. They argued it violated a law requiring ByteDance to divest or face a U.S. Ban.

Financial Implications

Financial experts have noted the $10 billion fee is extraordinarily high for a government-brokered deal. JD Vance estimated the U.S.-valued TikTok operations at about $14 billion, noting that the government’s fee amounts to roughly 70% of the deal – far higher than the typical 1% commission earned by investment bankers in similar transactions.