On Monday, President Donald Trump signed an executive order aimed at establishing a US sovereign wealth fund, which he proposed could be utilized to buy TikTok, an app currently under the threat of a ban in the United States. During a press conference at the White House, Trump emphasized that many smaller countries have sovereign wealth funds and stressed the tremendous potential that the US holds.
Sovereign wealth funds are investment vehicles that gather capital from the government, often stemming from surpluses generated by economic activities, like oil production. These funds can take various forms of investment, including stocks, bonds, real estate, and purchasing companies. Notably, Norway boasts the largest sovereign wealth fund globally, managing around $1.7 trillion in assets.
Trump's remarks on TikTok included the possibility of involving wealthy partners in the venture, stating that if they can reach a favorable deal, they will proceed; otherwise, they won't. He conveyed that the right to go ahead with such actions rests with him and expressed optimism about what the sovereign wealth fund could achieve in this context.
Treasury Secretary Scott Bessent indicated that the fund is expected to be established within the coming year. TikTok has a deadline until April to formulate a strategy in response to a Supreme Court mandate regarding its potential divestment or ban. After encountering a temporary shutdown that affected its 170 million users on January 18, TikTok was quickly restored.
Shortly after his inauguration, Trump extended the timeline for the ban, suggesting that the US could take a joint ownership stake in TikTok. Following this, he mentioned a possible collaboration with prominent tech figures like Elon Musk and Larry Ellison to explore an acquisition. Although Musk and Ellison have not publicly shown interest in buying TikTok, Musk has previously expressed his opposition to the ban, citing issues of free speech.
Neither representatives from Trump nor TikTok have responded to inquiries from Business Insider regarding this situation.
6 Comments
Rotfront
Sovereign wealth funds are for national interests, not for personal projects like TikTok.
Matzomaster
Haven't we learned that the government should not be in the business of running social media?
Karamba
This is a blatant ploy to control what Americans see and do online. No thanks.
BuggaBoom
Isn’t it ironic that a president who complains about 'big tech' wants to buy a tech company?
Katchuka
The last thing we need is more government interference in our personal lives.
Rotfront
This isn't how investments should work; it's all too sketchy and politically motivated.