Former President Donald Trump has suggested that a newly created US sovereign wealth fund could acquire TikTok, as the platform faces a looming deadline to divest from its China-based parent company, ByteDance, or face a ban in the United States.
Speaking on Monday, Trump mentioned the possibility of placing TikTok into the fund, which he directed American officials to establish via an executive order. The proposed fund would be modeled after similar investment funds in countries like Norway and Saudi Arabia.
“If we make the right deal, we’ll do it. Otherwise, we won’t,” Trump stated, adding that the US could potentially take a 50% ownership position in TikTok through partnerships with private investors.
However, significant challenges remain. Establishing a sovereign wealth fund is a lengthy process, and acquiring TikTok would require tens of billions of dollars. Additionally, legal experts warn that government ownership of a social media platform could raise First Amendment concerns and public skepticism about government oversight of free speech.
ByteDance must comply with the US law requiring its divestment by April, but whether the sovereign wealth fund idea will materialize in time remains uncertain. TikTok has yet to respond to the proposal.
