Trump Eyes TikTok Buyout With Sovereign Wealth Fund
U.S. President Donald Trump has signed an executive order to initiate the development of a government-owned investment fund, which he suggests could be used to profit from TikTok if an American buyer can be found.
Trump previously set a deadline for TikTok, owned by China’s ByteDance, to secure a U.S. partner or buyer by early April. He has now expressed an interest in having the U.S. take a 50% stake in the social media platform. Speaking in the Oval Office, Trump mentioned that TikTok could be a potential asset for a new U.S. sovereign wealth fund, alongside other investments.
Sovereign wealth funds typically invest in assets such as stocks, bonds, and real estate, often funded by a country’s budget surplus, although the U.S. currently does not have one. Trump hopes that the U.S. could eventually surpass Saudi Arabia’s sovereign wealth fund in size, which manages over $8 trillion globally.
Trump has tasked Treasury Secretary Scott Bessent and his pick for commerce secretary, Howard Lutnick, with laying the groundwork for the fund, which would likely require approval from Congress. The plan for the fund, including investment strategies and governance models, is due within 90 days.
In addition to TikTok, Trump has suggested the fund could potentially take stakes in other profitable ventures, such as vaccine manufacturers. Former President Joe Biden’s administration had explored creating a sovereign wealth fund for national security investments, but no concrete steps were taken before his term ended.
The future of TikTok in the U.S. remains uncertain after a federal law was passed in April, mandating ByteDance to divest or face a ban. The law was upheld by the Supreme Court last month, but Trump’s administration has given the company additional time to reach a deal.
