TikTok’s destiny within the U.S. continues to be up within the air, caught in an internet of nationwide safety debates, and a few unorthodox concepts from President Donald Trump.
Amongst these concepts is one which’s elevating eyebrows: The creation of a U.S. sovereign wealth fund to probably buy the app outright. It’s a transfer that may be unprecedented for the U.S., and, like a lot of the TikTok story, it raises extra questions than solutions.
Earlier this yr, a regulation took impact requiring ByteDance, TikTok’s Chinese language proprietor, to promote its U.S. operations or face a ban outright. The priority? That the Chinese language authorities may entry the app’s knowledge to spy on American customers. In response, Trump stepped in with an government order to delay the enforcement of the ban by 75 days, giving ByteDance a brief reprieve and permitting TikTok to renew operations. The app’s presence on Apple and Google app shops, nonetheless, wasn’t instantly restored, as each corporations waited for assurances they wouldn’t face penalties for internet hosting it.
By Feb. 13, TikTok was formally again in U.S. app shops, a lot to the aid of its huge person base, which accounts for practically half of all Individuals. The app’s recognition has solely grown, with greater than 52 million U.S. downloads in 2024 alone.
TikTok’s return to the app shops, nonetheless, doesn’t imply its issues are solved
Trump indicators an government order to create to start out the method of making an American sovereign wealth fund pic.twitter.com/JruvfcdWkc
— Aaron Rupar (@atrupar) February 3, 2025
The specter of a ban nonetheless looms, and ByteDance stays underneath strain to divest its U.S. operations.
Trump has taken a hands-on method to the TikTok difficulty, framing it as each a nationwide safety concern and a enterprise alternative. After delaying the ban, he informed reporters that the U.S. is entitled to “50% of TikTok” due to the federal government’s position in facilitating any potential sale. He’s additionally warned China towards interfering with any sale, threatening tariffs as excessive as 100% if ByteDance makes an attempt to dam or delay the method. Whereas such threats are per Trump’s broader commerce insurance policies, they add one other layer of complexity to an already delicate scenario.
In the meantime, TikTok’s unsure standing has attracted curiosity from a number of potential patrons. Amongst them is Frank McCourt, the previous proprietor of the Los Angeles Dodgers, who has proven curiosity in buying the app. In the meantime, tech entrepreneur Jesse Tinsley is main a bunch making ready an all-cash proposal to purchase TikTok. Apparently, MrBeast, has additionally joined forces with Tinsley’s group, signaling his intent to be a part of the bid for the extremely sought-after platform.
After which there’s Trump’s wildcard thought: A U.S. sovereign wealth fund. On Feb. 3, he signed an government order directing the Treasury and Commerce Departments to develop a plan for creating such a fund inside 90 days. The thought is to make use of the fund to make direct investments in property like TikTok, bypassing the necessity for personal patrons completely. Sovereign wealth funds are usually related to nations like Norway, Saudi Arabia, and Singapore, which use them to speculate surplus authorities income.
Trump’s government order was mild on particulars, leaving many questions unanswered: How would the fund be structured? The place would the cash come from? What governance mannequin wouldn’t it observe? Making a sovereign wealth fund would require congressional approval, a tall order given the polarized political local weather. Nonetheless, Trump appears undeterred. “We’re going to be doing one thing, maybe with TikTok, and maybe not,” he stated lately. “If we make the precise deal, we’ll do it. In any other case, we received’t…we’d put that within the sovereign wealth fund.”
If the U.S. does create a sovereign wealth fund, it could mark a big shift in how the federal government approaches financial coverage and tech investments. It may additionally set a precedent for future interventions in foreign-owned corporations working within the U.S. However the thought isn’t with out dangers. Authorities possession of a social media platform may increase moral questions on free speech, censorship, and market competitors.
So, so far as TikTok’s future is anxious, it stays as unsure as ever.
