Trump administration expected to receive $10 billion from TikTok US deal

A major restructuring of TikTok’s US operations could bring billions to the US Treasury, as investors backing the American-controlled entity agree to payments linked to the platform’s continued operation in the country.

The administration of Donald Trump is reportedly set to receive payments worth nearly $10 billion as part of an agreement linked to the restructuring of TikTok’s operations in the United States. The development was reported by The Wall Street Journal, citing individuals familiar with the deal.

According to the report, the payments are connected to an arrangement in which investors aligned with the administration acquired control over TikTok’s US business from its Chinese parent company, ByteDance. The move forms part of a broader effort to address national security concerns raised by US lawmakers over the handling of American user data.

Earlier this year, ByteDance completed a restructuring plan that created a new entity to oversee TikTok’s US operations. The entity, known as TikTok USDS Joint Venture LLC, is designed to manage American user data, the platform’s applications and certain technical systems through enhanced privacy and cybersecurity frameworks.

Investor group takes control of US operations

The joint venture is majority-owned by US investors, allowing the popular short-video platform to continue operating in the country while reducing direct control from its Chinese parent company. The app has a significant presence in the United States, with more than 200 million users.

Among the investors involved in the deal are Oracle, Silver Lake, and Abu Dhabi-based investment firm MGX. Reports indicate that these investors paid around $2.5 billion to the US Treasury when the agreement was finalised, with additional payments expected over time until the total reaches roughly $10 billion.

Officials associated with the administration have reportedly defended the payment structure, arguing that it reflects the government’s role in facilitating negotiations and ensuring the platform continues operating while addressing security concerns.

Legal challenges emerge over approval

Despite the agreement, the arrangement has faced legal scrutiny. Earlier this month, retail investors connected to two rival social media platforms filed a lawsuit against Trump and Pam Bondi, the US Attorney General.

The lawsuit seeks to challenge the decision that allowed ByteDance to establish the American-controlled joint venture, arguing that the approval should be reconsidered. Representatives from TikTok and the White House had not issued an immediate response to requests for comment at the time of the report.

The restructuring of TikTok’s US business remains closely watched, as it reflects the continuing geopolitical and regulatory tensions surrounding global technology platforms operating across national boundaries.