An executive order signed by President donald trump instructs the united states to start the process of creating a government-owned investment fund. trump said that if an agreement is reached for an American buyer, TikTok, the well-known social media site owned by the Chinese company ByteDance, would be added to this new sovereign wealth fund.

Trump's attempts to allay worries about TikTok's ownership and possible national security threats are being continued with this action. With trump emphasizing that the US may acquire a 50% ownership in the company, the executive order gives TikTok until early april to find an American partner or buyer. trump said in a statement from the Oval office that TikTok may be a good illustration of the kind of asset the US might include in its sovereign wealth fund.
 
"We might put that in the sovereign wealth fund, whatever we make, or we do a partnership with very wealthy people, a lot of options," trump said. However, we may use that as an illustration in the fund. There are plenty of additional items we may include in the fund.
 
Government-owned investment entities known as sovereign wealth funds usually handle assets including equities, bonds, and real estate. Budgetary surpluses, which the US does not currently have, are frequently the source of this money. According to trump, "Eventually, we'll catch it." The US might someday match the size of Saudi Arabia's sovereign wealth fund, which is among the largest in the world.

The international Forum of Sovereign Wealth institutions reports that over 90 of these institutions manage assets worth over $8 trillion globally. There are more than 20 state-level sovereign wealth funds in the united states, including those in Texas, New Mexico, and Alaska. These funds are mostly financed by profits from the sale of minerals, oil, and gas.
 
The fund's creation, which would probably need legislative approval, was to be overseen by Treasury Secretary Scott Bessent and Trump's choice for Commerce Secretary, Howard Lutnick. According to Bessent, the government hopes to get the fund up and running within the upcoming year. Lutnick proposed using the fund to invest in industries that generate profits, such as the production of vaccines.
 
After the U.S. government issued a federal statute in april requiring ByteDance to sell its shares in TikTok or risk being banned, there was a movement to resolve the company's ownership. President Biden signed the bill, but it was challenged in court by the firms involved and some TikTok users. As a result, the supreme court upheld the measure last month.
 
In order to give TikTok more time to work out a solution, President trump instructed the Justice Department to suspend the law's implementation for 75 days after taking office. A number of well-known investors have shown interest in purchasing TikTok's U.S. business, including former Treasury Secretary Steven Mnuchin and billionaire Frank McCourt. microsoft is among the businesses openly considering the platform, and trump stated that "many people" have contacted him regarding the transaction.
 
The U.S. government could hold up to 50% of a combined company that merged TikTok's U.S. operations with Perplexity's business, according to a recent proposal made to ByteDance by Perplexity AI, an artificial intelligence firm located in San Francisco. If the acquisition goes through, the government may end up owning a sizable portion of the new company, which may then go public with a valuation of more than $300 billion.
 
 
 
 
 

 
For more interesting updates wa click and follow Indiaherald WhatsApp channel

Find out more:

SIBY JEYYA

04/02/2025 08:32 AM