TikTok Rescue: Trump Floats Sovereign Wealth Fund Involvement
President Donald Trump has hinted at the potential involvement of a newly established US sovereign wealth fund in the rescue attempt of TikTok from an impending ban.
Previously, Trump had proposed the US acquiring a 50% stake in the social media platform as part of a deal with TikTok's Chinese parent, ByteDance. On his second day in office, Trump stated that he would consider giving a permit to a potential buyer that would acquire half of TikTok and share it with the US.
During the signing of an executive order that directs the US Treasury and Commerce departments to launch a sovereign wealth fund, Trump suggested that TikTok could potentially be incorporated into the fund. He also mentioned the possibility of partnerships with wealthy individuals.
Secretary of Treasury Scott Bessent and Howard Lutnick, Trump's nominee for Commerce Secretary, were present as the president addressed reporters in the Oval Office.
Trump issued a separate executive order on January 20th, temporarily shielding TikTok from the law that effectively banned the app a day before his inauguration. This order has been met with skepticism regarding its legal validity.
ByteDance has until April 4th to comply with the law despite Trump's statement that he would determine TikTok's fate in February.
Other potential TikTok buyers mentioned by Trump include Elon Musk of X, Larry Ellison of Oracle, and Microsoft. It remains unclear if any of these individuals are actively engaged in discussions.
Microsoft, along with Walmart, previously made an unsuccessful bid for TikTok during Trump's first term. When questioned about Microsoft's interest in acquiring a stake in TikTok, Trump affirmed this possibility.
Trump has also expressed his willingness for Oracle co-founder Larry Ellison to purchase the app. NPR has reported that the Trump administration was considering a plan to transfer control of TikTok to Oracle, with other investors involved. Oracle currently provides services to TikTok, such as data storage.
However, Trump has denied talks with Oracle. He has also claimed that he had no conversations with Ellison regarding TikTok.
According to Bloomberg and the Wall Street Journal, Chinese government officials have discussed selling TikTok's US business to Tesla CEO Elon Musk.
Trump has expressed a preference for bidding wars, stating that they often lead to the best deals.