How much will US government earn from the TikTok deal?
What's the story
United States President Donald Trump has announced that the country will receive a "tremendous fee" under an agreement over the ownership of TikTok. He expects to finalize the deal with Chinese President Xi Jinping this week. Speaking at a joint news conference with UK Prime Minister Keir Starmer, Trump described the arrangement as a financial victory for America.
Financial details
Deal likely to be multibillion-dollar fee
The Wall Street Journal reported that the Trump administration is likely to receive a multibillion-dollar fee for brokering a US takeover of TikTok's American business. This payment will reportedly come from TikTok's US investors, including private equity firm Silver Lake and Oracle. The new consortium would acquire 50% of TikTok, while ByteDance, the parent company of TikTok China, would retain less than 20%.
Financial gain
Billions of dollars could flow from US companies to government
The deal, if approved, could result in billions of dollars flowing from US companies to the US government. The exact details of the agreement remain unclear as negotiations continue. However, it is expected that these companies are willing to pay such a hefty amount because they anticipate even greater returns from this arrangement.
Deal description
Arrangement termed as 'fee-plus' by Trump
Trump has called the arrangement a "fee-plus." He has emphasized that this is a major win for US financially. The deal is still under negotiation and its final terms are yet to be disclosed. However, it has already attracted attention due to its potential economic impact on both countries involved.