Trump Floats Idea That TikTok Could Be Bought by New U.S. Sovereign Wealth Fund

On Monday, President Donald Trump stated that a fresh U.S. wealth fund might potentially purchase ownership rights for the widely used social media platform, TikTok.

President Trump issued an executive order, instructing both the U.S. Treasury and Commerce Departments to establish a government-backed investment fund. This American sovereign fund might acquire ownership shares in TikTok, following Trump’s statement on January 19, expressing his desire for a postponement of the proposed U.S. ban on this ByteDance-owned application.

Trump stated to reporters during a White House event that there might be potential collaboration involving TikTok. However, this depends on the terms of any deal struck. If favorable conditions are met, such collaboration could occur; otherwise, it won’t. Trump emphasized his authority in making this decision. He further suggested that the outcome, whether it’s a deal with a sovereign wealth fund or a partnership with affluent individuals, would be included as an example of the fund, should it materialize.

On January 19, when a legislation for divestiture was about to pass, the widely-used social video app momentarily shut down in the U.S. This unexpected outage may have been delayed due to Trump’s request for more time to secure an American purchaser.

Afterward, he issued an executive decree prolonging the ban on TikTok sales within the U.S. by 75 days, allowing negotiations with potential American purchasers to carry on.

A sovereign wealth fund, one of around 50 globally as per the UK-based International Forum of Sovereign Wealth Funds, is a type of investment vehicle controlled by a country’s government. It invests its resources in foreign financial assets.

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2025-02-03 23:24