TikTok’s Future in the US Hinges on Finding a New Owner
TikTok is racing against time to secure a non-Chinese owner or risk being banned from the United States. The widely popular short-video app, owned by Chinese tech giant ByteDance, has been at the center of US national security concerns for years. Now, former President Donald Trump has suggested that a newly created US sovereign wealth fund could step in to acquire the platform, keeping it accessible to American users.
Trump Proposes US Sovereign Wealth Fund to Acquire TikTok
On Monday, Trump revealed that TikTok might be integrated into a sovereign wealth fund backed by the US government. Though details remain unclear, he compared the idea to investment funds operated by other nations, including Norway and Saudi Arabia, which use state-controlled capital to invest in assets such as real estate, stocks, and bonds.
“We’re looking at different options, and TikTok could be part of this potential sovereign wealth fund,” Trump stated. “If the right deal comes along, we’ll move forward. If not, we won’t.” He also hinted at the possibility of a partnership with private investors, though no specifics were given.
The Looming Deadline: TikTok Must Find a Buyer by April
The proposal comes at a critical moment for TikTok, which has been given until April to sever ties with its parent company, ByteDance. Trump previously signed an executive order extending the deadline by 75 days, but if no buyer is secured within that time frame, the app could be removed from US app stores, cutting off its 170 million American users.
Trump has expressed his willingness to facilitate a deal that would keep TikTok operational in the US. In the past, he suggested that the US government could hold a 50% stake in a joint venture with either new or existing investors.
Major Challenges to a Government-Owned TikTok
While the idea of using a US sovereign wealth fund to acquire TikTok may sound promising, its feasibility is questionable. Setting up such a fund would require substantial capital—likely tens of billions of dollars—and it remains unclear who would oversee its operations.
Additionally, a government acquisition of TikTok would raise complex legal and constitutional issues, particularly concerning the First Amendment. If the US government were to own or significantly control the platform, it could face restrictions on moderating content due to free speech protections.
Alan Rozenshtein, a professor at the University of Minnesota Law School specializing in technology law, explained that any deal would require ByteDance to completely divest from TikTok. The law mandates that the Chinese company’s stake in the app cannot exceed 20%, and all operational ties between TikTok and ByteDance must be severed. However, one major obstacle remains—ByteDance and Chinese officials have long resisted giving up full control of TikTok’s powerful recommendation algorithm, which drives user engagement.
“That would address the divestment concerns Congress had when passing the law,” Rozenshtein told CNN. However, if the US government assumes ownership of TikTok, he warned, the platform could become “ungovernable” due to the restrictions placed on government-owned entities regarding content regulation.
User Backlash: Concerns Over Government-Controlled Social Media
Beyond the legal and financial challenges, the idea of the US government owning a major social media platform is unsettling to many users. The potential for increased government oversight has raised fears that content on TikTok could be restricted or manipulated.
“I don’t think anyone wants to be on a platform that’s owned and monitored by the government,” one user posted in a video. Another creator expressed concern that government ownership could impact what topics people are allowed to discuss, including political criticism.
“It’s absolutely dystopian to even consider that the federal government should own our social media,” they said. “Why is this even being suggested?”
TikTok’s Uncertain Future
With the deadline fast approaching, TikTok’s fate in the United States remains uncertain. Whether it finds a private buyer, negotiates a partnership, or faces an outright ban, the outcome will have significant implications not only for the app’s millions of users but also for the broader relationship between the US and China in the tech sector.
For now, the world is watching to see how this high-stakes game plays out.