Trump Suggests TikTok May Be Acquired by New US Wealth Fund

This article does not constitute investment advice. The author does not hold positions in any of the mentioned stocks.

President Donald Trump has recently indicated that he is actively seeking a resolution regarding the ban on TikTok in the United States. This move follows his decision last month to grant the popular application a temporary reprieve. Initially, Trump issued an executive order on his first day in office, permitting TikTok to continue operations for a period of 75 days.

Executive Order for a US Sovereign Wealth Fund & TikTok’s Potential Resolution

Today’s announcements from the President unveil new developments, including an executive order focused on the establishment of a US Sovereign Wealth Fund. Although the details of the order have yet to appear on the White House website, Press Secretary Karoline Leavitt confirmed its signing on social media platform X. This sovereign wealth fund would serve as a government investment mechanism, similar to those utilized by countries like the UAE and Norway.

During the ceremony, President Trump articulated that the newly proposed fund might potentially acquire TikTok. The app, owned by the Chinese company ByteDance, faces challenges due to the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA), which identifies its foreign ownership as a barrier to operation within US borders.

TikTok’s ownership by ByteDance raises significant concerns, particularly due to Chinese laws that compel companies to share data with government entities for intelligence purposes. As a result, fears have emerged regarding the app’s potential threat to US national security. Since the inception of the ban, rumors about various purchasers have circulated, though no concrete developments have materialized thus far.

Given Trump’s recent 75-day reprieve, TikTok is positioned to cease US operations as early as April. The President has mentioned that he is in discussions with multiple stakeholders regarding a potential acquisition, expressing confidence in reaching a conclusion about the app’s fate by the end of this month. This suggests a possible resolution to the TikTok situation ahead of the anticipated permanent ban.

Among the potential suitors for TikTok are technology giants Microsoft and Oracle, as speculation continues to mount. Interestingly, reports have emerged indicating that iPhones with the TikTok application pre-installed are being listed at inflated prices online. While TikTok remains operational in the US due to the reprieve, Apple has removed the app from its App Store in adherence to US legal requirements.

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