Exclusive | Trumps TikTok deal could face hitch over billionaires stakes in China parent ByteDance: sources

President Trump’s much touted TikTok deal could be facing a last-minute hitch – and it has to do with billionaires, taxes and China hawks in Congress, On The Money has learned.Billionaire Jeff Yass – a major Trump backer in the 2024 election who heads the giant investment firm Susquehanna partners – is among those who could face the wrath of Congress or a major US tax levy if they are forced to sell their current stakes in TikTok’s Beijing-based owner, ByteDance, in order to buy into a new, US-controlled TikTok, according to insiders. So are Bill Ford of General Atlantic Partners and private equity powerhouse KKR.All were big investors in ByteDance and they have been planning to “roll” their shares into the new US-controlled company to avoid hefty capital gains taxes. Susquehanna is said to hold a 15% stake in ByteDance and General Atlantic is seen holding an equally large position.

KKR’s stake is around 1.7%.The question is whether a roll-over comports with the current law demanding that the US majority controls TikTok.At least on paper, the Chinese shares could end up as most of the equity in the new company when you throw in the 19.9% stake promised to the mainland that will be held by ByteDance.The White House, for its part, believes the deal comports with the law.

“There is no way the law prevents US investors from controlling the new company using their Chinese shares,” one White House insider told me.“They are US investors, Under the law that does not constitute further Chinese ownership that has to stop at 19.9%.”Others involved in the deal aren’t so sure.

Congressional concerns are mounting that the deal still violates legislation designed to ban TikTok if it’s not totally divorced from China. “If these guys who hold ByteDance stock want in, they are probably going to have to sell,” one prospective equity investor told On The Money.“If this thing looks like it’s going to be majority owned or even close to it by the...