A historic corporate maneuver sees TikTok US sold under unprecedented terms, with investors paying a massive “brokerage fee” to the U.S. Government.
The saga of TikTok’s US operations has ended with an eye-popping twist: investors in the platform will pay a record $10 billion (£7.8bn) “brokerage fee” to the US Treasury, sources confirm. Dubbed a “fee-plus” by President Trump, the levy makes his administration arguably the most expensive corporate matchmaker in history.
The deal transferred TikTok’s American operations to TikTok USDS Joint Venture LLC, a new US-based entity owned by Oracle, Silver Lake, and Abu Dhabi-based MGX. The unprecedented fee, paid in installments, reflects the government’s role in navigating national security concerns and restructuring the platform to comply with stringent US laws.
While officials hail the fee as fair compensation for the complex geopolitical and regulatory work involved, critics argue it blurs politics and private business, setting a worrying precedent. ByteDance, TikTok’s Chinese parent, retains control of the recommendation algorithm, leaving some US lawmakers concerned about continued foreign influence.
TikTok US, led by CEO Adam Presser, now controls user data and operations in America. For millions of users, the app’s ban threat has lifted, but the extraordinary terms and massive fee will likely be debated in courts and Congress for years. Retail investors have already filed legal challenges, questioning the legitimacy of the $10B levy.
The $10 billion “fee-plus” ensures TikTok’s legacy will extend beyond viral trends, marking it as one of the most controversial corporate shakeups of the 21st century.
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