Trump administration to receive $10bn fee for US TikTok deal

The Trump administration is set to receive roughly $10 billion from investors who acquired control of TikTok‘s US operations, as a fee for brokering the deal that allowed the popular app to continue operating in the country.

According to a report by The Wall Street Journal on March 13, citing people familiar with the matter, the payment is not a single lump sum. Investors made an initial transfer of $2.5 billion to the US Treasury Department when the deal closed in January. The remaining amount will follow in instalments.

In January 2026, TikTok established TikTok USDS Joint Venture LLC, a new majority-US-owned entity, to comply with national security concerns and an executive order signed by President Donald Trump in September 2025.

The joint venture operates independently with a seven-member board, including TikTok CEO Shou Chew.

Under the structure, ByteDance, TikTok’s Chinese parent company, holds a minority stake of 19.9 percent. The three managing investors are Silver Lake, Oracle, and Abu Dhabi-based MGX, each controlling 15 percent stakes. Other investors make up the balance to give American and allied entities majority control.

The $10 billion fee is separate from any capital the investors committed to fund and operate the new business. Vice President JD Vance previously stated that the US TikTok entity is valued at about $14 billion, though some tech analysts consider this valuation too low.

President Trump previewed elements of the arrangement last September, describing it as a framework still under negotiation. He noted that the US government would likely receive compensation, which he called a “fee-plus” due to the deal’s scale and his administration’s role in facilitating it. Trump had emphasised that the fee rewarded the government’s efforts in enabling the transaction.

The WSJ highlighted that typical investment banking fees for major corporate deals are under 1 percent of transaction value, often lower for larger deals.

For comparison, Bank of America is expected to earn around $130 million for advising on Norfolk Southern’s $71.5 billion sale to Union Pacific, one of the largest such fees on record.

Administration officials defend the $10 billion payment, arguing it is justified given Trump’s direct involvement in averting a potential ban and securing TikTok’s future in the US.

In mid-September 2025, Trump announced an agreement with China on the deal framework. On September 25, he signed an executive order outlining a “qualified divestiture” roadmap for TikTok’s US operations. He also delayed enforcement of the divest-or-ban law multiple times, pushing the final deadline to January 23, 2026, and directing the Department of Justice to hold off until then.

The fee aligns with the administration’s approach to other major corporate matters, such as securing equity stakes or revenue shares in deals involving companies like Intel and Nvidia in exchange for regulatory approvals or export licences.

The arrangement resolves years of uncertainty over TikTok’s status in the US, where it has more than 200 million users, while addressing concerns about data security and foreign influence.