In September, former President Donald Trump made headlines by asserting that the United States stands to gain a “tremendous fee” from the recent TikTok deal. Reports from the Wall Street Journal and the New York Times have shed light on these claims, suggesting that the fee could be as high as $10 billion. This substantial amount is reportedly being contributed by new investors, including notable tech firms Oracle and Silver Lake.
According to sources familiar with the transaction, an initial payment of $2.5 billion has already been transferred to the U.S. Treasury, following the completion of the deal on January 22. The remainder of the fee is expected to be paid in installments over time.
This development highlights a growing trend during Trump’s administration of unprecedented government involvement in private enterprise. Past actions include taking a 10-percent equity stake in Intel and acquiring a “golden share” in U.S. Steel, as well as demanding a 20-percent cut from Nvidia’s chip sales to China.
Complicating this financial landscape is the involvement of Larry Ellison, co-founder and CTO of Oracle, who has been a significant supporter and fundraiser for Trump. If the reported figures are accurate, the fee alone would constitute more than 70 percent of the overall deal value, which saw a group of investors secure a majority stake in TikTok for $14 billion. This transaction, along with other instances of government intervention in business, raises questions about the future dynamics of private-public partnerships in the United States.
