Mar 15 • 09:17 UTC 🇰🇷 Korea Hankyoreh (KR)

Trump Administration to Receive 15 Trillion Won for Mediating TikTok Sale… 'Unprecedented Amount'

The Trump administration is set to receive approximately $10 billion for facilitating the sale of TikTok's U.S. operations, representing a staggering 70% of the company's estimated value.

The Trump administration is poised to receive nearly $10 billion (around 15 trillion won) as a commission for brokering the sale of TikTok's U.S. business. According to the Wall Street Journal, this commission will be paid by a consortium of investors, including Oracle and private equity firm Silver Lake, who are acquiring TikTok. This amount is significant given that the proposed valuation for the new TikTok entity operating in the U.S. is approximately $14 billion, meaning the $10 billion fee represents about 70% of this valuation. This substantial payment is described as unprecedented, highlighting the unique circumstances surrounding the transaction.

The controversy surrounding TikTok began in the latter half of 2019 when concerns over national security led the Trump administration to consider banning the app due to its Chinese ownership by ByteDance. As the situation escalated, former President Joe Biden signed a forced sale bill in April 2024. However, Trump, who initially pushed for a TikTok ban, later reversed his stance during the 2024 campaign, advocating for its presence while extending deadlines for the sale multiple times after taking office. This reversal indicates a complex political strategy aimed at balancing economic interests with security concerns.

When announcing the sale negotiations last September, Trump justified the government’s fee by stating that it deserved compensation for its efforts in facilitating the deal and alleviating national security concerns. His rationale suggests that receiving such a fee is acceptable owing to the administration's role in negotiating the sale while addressing security fears, thus placing financial gain at the intersection of geopolitics and corporate transactions.

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