A new TikTok buyout bid could emerge as U.S. President Donald Trump signed an executive order Monday directing officials to establish a sovereign wealth fund. It will be modeled after similar entities in Norway and Saudi Arabia, which invest national funds into financial assets including stocks, bonds, and real estate. 

Trump said the fund could potentially acquire TikTok or form a partnership with private investors, as the platform faces an April deadline to separate from its Chinese parent company ByteDance or face a U.S. ban.

The Associated Press (AP) reports that Treasury Secretary Scott Bessent and Commerce Secretary nominee Howard Lutnick will lead the fund’s development, with a 90-day deadline to submit investment strategies and governance recommendations. The administration aims to establish the fund within 12 months.

The U.S. currently has no federal sovereign wealth fund, though more than 20 exist at the state level, primarily funded by oil, gas, and mineral revenues, the AP cites the Center for Global Development, a non-partisan think tank. 

Globally, over 90 sovereign wealth funds manage approximately $8 trillion in assets, reports The International Forum of Sovereign Wealth Funds.

TikTok Sale Negotiations

Several potential buyers have emerged for TikTok’s U.S. operations, including billionaire Frank McCourt, former Treasury Secretary Steven Mnuchin, and Microsoft. 

According to the AP, San Francisco-based startup Perplexity AI proposed a structure allowing up to 50% government ownership in a combined entity with TikTok’s U.S. platform, potentially valued at $300 billion upon public offering.

Alan Rozenshtein, a tech law professor at the University of Minnesota Law School, noted for CNN that while government ownership could satisfy divestment requirements, First Amendment complications could arise regarding content moderation.

ByteDance and Chinese officials have previously opposed transferring control of TikTok’s algorithm. The platform’s 170 million American users have expressed concerns about government ownership and potential surveillance.

Trump previously suggested that the U.S. could take 50% ownership in a joint venture. The AP notes the Biden administration had explored creating a sovereign wealth fund for national security investments before leaving office, though no action was taken.