Trump Administration to Collect $10 Billion Fee From TikTok Deal

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The Trump administration will receive around $10 billion from investors, including Oracle and Silver Lake, who took control of TikTok's U.S. operations. The payment is on top of money already invested to create a new U.S.-based entity to run the app. 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 shut the app down.

Why it matters

This TikTok arrangement is part of a wider pattern of the Trump administration taking equity stakes in private companies or collecting fees for facilitating deals. The $10 billion fee is nearly unprecedented for a government helping arrange a private transaction and raises questions about the appropriate role of government in private business dealings.

The details

Investors including Oracle, Silver Lake, and Abu Dhabi's MGX paid about $2.5 billion to the Treasury when the deal closed in January. They will make several more payments until the total reaches $10 billion. ByteDance still owns nearly 20% of the new entity and licensed its algorithm to it. The new U.S. entity, TikTok USDS Joint Venture LLC, manages U.S. user data, apps, and algorithms.

• The deal was finalized in January 2026.
• $2.5 billion has already been paid to the Treasury.
• More payments will be made until the total reaches $10 billion.

What they’re saying

What’s next

The deal was required under a law passed during Trump's first term, and retail investors in rival social media companies have sued Trump and Attorney General Pam Bondi in an attempt to reverse approval of the ByteDance joint venture deal.