WASHINGTON (Diya TV) — Investors working to create a U.S.-controlled version of TikTok plan to pay a $10 billion transaction fee to the U.S. government, according to people familiar with the deal. The payment marks one of the most unusual examples of federal involvement in a private corporate transaction under the administration of Donald Trump.
The payment will go to the U.S. Treasury as part of a broader agreement designed to resolve national security concerns surrounding TikTok, the popular short-form video platform owned by Chinese technology company ByteDance. Officials and investors say the arrangement helped secure a deal that reshaped TikTok’s U.S. ownership structure while reducing foreign control.
Sources familiar with the negotiations say investors already paid about $2.5 billion when the deal closed in January. They plan to send the remaining payments to the Treasury over time.
The fee represents compensation for the U.S. government’s role in facilitating the deal. The administration framed it as a transaction fee tied to its efforts to address national security risks linked to foreign ownership of major technology platforms. The total payment has drawn attention across Washington and the technology industry because of its size. Some experts say it may be unprecedented for the federal government to collect such a large fee tied directly to a corporate restructuring.
Aaron Bartnick, a former White House technology security official during the administration of Joe Biden, said the $10 billion fee appears “outrageously large” compared with typical government involvement in corporate deals. The agreement values TikTok’s U.S. business at about $14 billion, according to JD Vance, who helped lead the negotiations. That estimate means the government’s fee equals roughly 70% of the company’s stated value.
Several major investors helped fund the restructuring of TikTok’s U.S. operations. Technology company Oracle, investment firm Silver Lake, and Abu Dhabi-based investor MGX each hold roughly 15% stakes in the new company, according to people briefed on the transaction. Additional investors include the personal investment firm of technology billionaire Michael Dell, founder of Dell Technologies. An affiliate of global trading firm Susquehanna International Group also joined the investment group.
The new structure significantly reduces the ownership stake held by ByteDance. The Chinese company now controls just under 20% of TikTok’s U.S. entity after the restructuring. Investors say the move aims to reassure U.S. lawmakers who worry about potential data access by foreign governments.
For years, U.S. officials from both political parties raised concerns about TikTok’s Chinese ownership. Lawmakers warned that sensitive user data could fall into the hands of foreign authorities. Those concerns pushed the White House to seek changes to TikTok’s corporate structure. Under the new arrangement, ByteDance separated its U.S. business into a distinct company. New American and international investors then took large ownership stakes.
Supporters say the structure will reduce security risks while allowing the popular social media platform to continue operating in the United States. TikTok has more than 150 million users in the country and plays a major role in digital culture, entertainment, and online marketing.
The administration of Donald Trump took an active role in negotiating the agreement. Trump appointed Vice President JD Vance to oversee the deal last year. The president openly discussed the idea of charging a government fee tied to the negotiations. In September, Trump said the United States would receive a “tremendous fee” for helping assemble the agreement.
“I call it a fee plus for just making the deal,” Trump said at the time.
Critics say the government’s direct involvement in private-sector deal-making raises new questions about the role of federal power in corporate negotiations.
Some investors connected to the deal have ties to the administration. Larry Ellison, co-founder of Oracle, has maintained a friendly relationship with Trump for years. His son, David Ellison, leads Paramount Global and has backed a planned acquisition involving Warner Bros. Discovery. The Emirati investment firm MGX has also conducted business with the Trump family’s cryptocurrency venture, World Liberty Financial.
Supporters of the TikTok deal argue that it resolves years of uncertainty about the platform’s future in the United States. Critics say the massive government fee sets a new precedent for federal involvement in corporate restructuring. For now, investors continue to finalize payments tied to the $10 billion agreement as the newly structured U.S. TikTok begins operating under its revised ownership model.
