TikTok restructuring could bring $10 billion to US treasury

According to the Wall Street Journal, the Trump administration is set to receive about $10 billion from investors involved in the deal concerning the US operations of TikTok. The arrangement follows a January agreement under which China’s ByteDance agreed to create a joint venture with majority US ownership.

The aim is to address Washington’s national security concerns and prevent a ban on the app, which is used by hundreds of millions of people in the US.

The new entity is expected to be owned 80.1 per cent by US investors, with ByteDance retaining 19.9 per cent. According to available information, stricter security rules are intended to safeguard US data, applications and algorithms.

Investors mentioned include Oracle, Silver Lake and MGX from Abu Dhabi. According to the WSJ, they have already paid the Treasury Department about $2.5 billion, with further payments expected until the total reaches $10 billion.

Vice President JD Vance previously said that the new US company would be valued at about $14 billion.

(pir)