Could the US Government Buy TikTok?
Warning: TikTok is technically still banned . Although President Trump has promised to delay the TikTok ban until April , it is still not being distributed in either the Apple or Google app stores, and in the long term Bytedance is still expected to sell the app to an owner in the United States. . In the past, Meta, Microsoft and other big tech companies have been considered as potential new owners, but now Trump is proposing a surprise candidate: the United States government .
In an executive order signed Monday night, the president directed the government to develop a plan to create a “sovereign wealth fund” that would allow the government to invest directly in private companies and use the proceeds as it sees fit. The departments have 90 days to submit a plan, with Trump saying, “We’re going to create a lot of wealth for the fund.”
Said wealth could then be used to fund infrastructure like highways or airports, but in a more unexpected direction, Trump also suggested the government could use the fund to buy TikTok. “We’re going to do something, maybe with TikTok, maybe with TikTok as well. No. If we get the right deal, we’ll do it.” Specifically, Trump has suggested that the government could acquire a 50% stake in the company, which, while technically short of the magic 51% required for complete control, would be enough to give him veto power.
As with Trump’s executive orders so far, the details likely remain to be worked out. Such a purchase would fundamentally change the nature of TikTok, risking turning it into a state media outlet, although it would technically meet the terms of the ban , which stipulates that Bytedance cannot own more than 20% of the company’s shares and cannot participate in its operations.
Alternatively, the US could own a private corporation, as is the case with Amtrak, but a government-sponsored, user-run social networking site would be uncharted territory. Following the mass exodus from X following Elon Musk’s acquisition of the site, there’s nothing to stop users unhappy with US-owned TikTok from fleeing to alternatives .
The biggest hurdle to a potential government-backed purchase of TikTok may be the timing of the buyout itself, as the ban must take effect again before the fund is created. However, the law gives Trump the authority to further extend the Bytedance sale if he feels significant progress has been made toward a deal.
As for the sovereign wealth fund itself, although it is a first for the federal government, it is not a new idea. States such as Texas, as well as countries such as Singapore, Australia and the United Arab Emirates, currently operate their own sovereign wealth funds, with the total value of all sovereign wealth funds worldwide amounting to approximately US$8 trillion .