The Trump administration will receive a commission of about USD 10 billion for brokering the deal between ByteDance and US investors TikTok. The amount is about 70% of the new company's value. About. reports The New York Times with reference to the sources.
Agreement between ByteDance and American investors
In January ByteDance completed a joint venture agreement with US investors. This allowed TikTok to avoid a ban in the US.
The new investors include Oracle, MGX, Silver Lake, and an unnamed firm from the Emirates. The companies have already paid about $2.5bn in fees since the deal closed.
The size of the commission and the reaction of experts
The Trump administration's commission will be about 70% of the new company's value. This is an unprecedented figure for such deals.
Former Assistant Director of the White House Aaron Bartnik said that the $10bn fee was unique for such transactions. Investors have already begun to pay part of the amount.
Context.
The agreement allowed TikTok to continue operating in the US market. Previously, there was a threat of a complete ban on the app due to national security concerns.
ByteDance agreed to form a joint venture with US investors. This was a compromise between the US government's requirements and the company's interests.
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