Donald Trump's administration is expected to receive as much as $10 billion fee in connection with a transaction that allowed a popular video app to stay on the American market. This is an unprecedented situation in which the government charges specified a powerful fee to private investors.
According to the latest "The Wall Street Journal" report, fresh investors (including the technological giant Oracle and Silver Lake and MGX funds), who have taken over shares in the US branch of the Chinese platform, have already paid the administration $2.5 billion. This payment took place in January, just after the authoritative conclusion of the contract. But that is not the end. The group of investors is expected to make further payments until the full amount of brokerage fees in the transaction reaches astronomical $10 billion.
Toll absorbing company value
To better realize and illustrate the scale of this financial operation, it is worth recalling the fresh words of Vice president JD Vance. It valued the full recently formed American entity (TikTok USDS Joint Venture) at $14 billion. This means that the government fee will absorb a immense part of the marketplace value of the company being acquired.
It is worth recalling that this is not the first time that the current US government has so heavy engaged financially in the business of large corporations. Last year, the administration invested $8.9 billion in Intel, taking almost 9 percent of its shares in return. In May, the government praised an unprecedented gift from the Qatar government – a luxury passenger aircraft Boeing 747-8.
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