US Will Receive $10 Billion from TikTok
The US is expected to receive approximately $10 billion as a fee from investors following the recently finalized agreement for China’s ByteDance Ltd. to divest the American operations of the social video app TikTok to a consortium of US investors, according to a report on Friday. A federal law mandated that TikTok either cease operations in the US or be sold to domestic owners at the onset of President Donald Trump’s second term. However, the president employed a series of executive actions to prolong that deadline, and the White House facilitated the sale to a consortium led by Oracle Corp. and Silver Lake Management LLC.
The White House has yet to provide a response to a request for comment; however, Trump had previously hinted at the possibility of such a fee. “The United States is getting a tremendous fee-plus — I call it a fee-plus — just for making the deal and I don’t want to throw that out the window,” Trump stated in September. The newly established entity, referred to as TikTok USDS Joint Venture LLC, will take on the responsibility of moderating content on TikTok and safeguarding the data of users in the United States.
A new, seven-member board, predominantly composed of Americans, will oversee it. TikTok’s Chief Executive Officer Shou Chew — who will continue to oversee ByteDance’s most valuable asset on a global scale — will hold a position on the board. Adam Presser, previously TikTok’s head of operations, trust and safety, will lead the US venture as its CEO.
