Trump Administration Secures $10 Billion from TikTok Deal, Observers Question "Unusual Transaction Fee"
The Trump administration is reported to set receive a payment of US$10 billion (approximately Rp157 trillion) from a group of investors as part of a deal to create an American-controlled version of TikTok.
According to a report first published by the Wall Street Journal, the US$10 billion in funds is being treated by the US government as a form of “transaction fee.” The money is being paid by investors with close ties to the Trump administration after they took over TikTok’s operations in the United States from its Chinese parent company, ByteDance.
The investor group now controlling the popular social media application includes software giant Oracle, Abu Dhabi-based investment firm MGX, and private equity company Silver Lake.
Supporters of the deal have reportedly deposited US$2.5 billion into US government coffers when the agreement closed in January. They are scheduled to make further payments under this unusual arrangement until the total reaches US$10 billion.
President Donald Trump previously hinted at substantial compensation for the government in return for its role in facilitating the deal. “The US will receive a very large fee, which I call a fee-plus, simply because they made this deal happen, and I don’t want to throw that away,” Trump said when signing the executive order approving the agreement.
He added that under this deal, TikTok would be entirely operated by Americans. “It is owned by Americans, and very sophisticated Americans. It will be operated entirely by America,” Trump stated.
Government involvement in collecting transaction fees from deals between private companies is extraordinarily rare. The US$10 billion figure far exceeds standard investment banking fees, which typically range around 1%.
Vice President JD Vance previously stated that the value of the American version of TikTok was estimated at US$14 billion. If this figure is accurate, the fee collected by the government amounts to nearly 70% of the total deal value. Under this agreement, TikTok can continue to operate fully in the US, though investors must still share profits with ByteDance.
This move adds to a lengthy list of unusual government involvement in the private sector under the Trump administration. Previously, the government was reported to have taken stakes in companies such as Intel and USA Rare Earth.
Furthermore, a report from The Atlantic on Saturday mentioned commercialisation of access to communications, with Trump’s personal telephone number reportedly being sold to CEOs and crypto investors. In exchange for certain investments, investors were allegedly offered “guaranteed direct access” to the president.
To date, the TikTok deal remains under intense scrutiny due to its mixing of national security interests with controversial government business transaction practices.