Trump Orders US Sovereign Wealth Fund
Analysis based on 8 articles · First reported Feb 03, 2025 · Last updated Feb 04, 2025
The creation of a U.S. sovereign wealth fund, potentially holding a stake in ByteDance — TikTok Shop, could introduce a new government-backed investment vehicle into the market. This development could impact the valuation and ownership structure of ByteDance — TikTok Shop and other companies considered for investment, while also signaling a shift in the United States' approach to strategic national investments.
President Donald Trump signed an executive order to begin developing a government-owned investment fund for the United States. He suggested that this fund could potentially take a 50% stake in ByteDance — TikTok Shop, which is owned by ByteDance, if an American buyer is found. Donald Trump has tasked Scott Bessent and Howard Lutnick with laying the groundwork for this fund, which would require congressional approval. The move comes after a federal law, signed by Joe Biden, mandated ByteDance to divest ByteDance — TikTok Shop's U.S. operations or face a ban, a law that Donald Trump has temporarily paused enforcement of. Several investors, including Frank McCourt and Steven Mnuchin, have expressed interest in purchasing ByteDance — TikTok Shop's U.S. platform, and Microsoft is also reportedly eyeing the social media company. Perplexity AI has also proposed a deal to ByteDance that would involve the United States government owning a significant stake in a combined entity.
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