The Trump administration will somehow make $10 billion off the TikTok deal

The yearslong battle over TikTok’s ownership has concluded in a $10 billion windfall for the Trump administration. On Friday, the Wall Street Journal reported that investors in the recently completed deal to create a US-controlled TikTok will pay the government the exorbitant sum for its role in helping broker the transaction. The fee is about 70 percent of the new US TikTok’s $14 billion valuation.

Finalized in January, the TikTok deal concludes a saga that began in 2019, when US politicians began raising alarms about the Chinese-owned app’s potential threat to national security. In 2024, President Joe Biden signed a bipartisan bill that required TikTok’s Chinese parent company, ByteDance, to sell the app or face a ban.

But Trump—despite being the first president to attempt such a ban—made “saving TikTok” one of his focal points in his second term, recognizing the app’s appeal with young voters. Trump’s solution? Transfer ownership of TikTok’s US operations to an American investor group led by one of his billionaire allies, Larry Ellison.