Former US Treasury Secretary Steven Mnuchin has announced plans to assemble an investor group to purchase TikTok, just a day after the House of Representatives passed a bill threatening to ban the app in the US if its Chinese parent company does not divest its ownership.
TikTok, boasting over 170 million American users, is currently owned by ByteDance Ltd., a Chinese technology firm. Mnuchin, speaking on CNBC’s “Squawk Box,” emphasized the importance of American businesses’ ownership of TikTok, citing the lack of reciprocity in China for US companies.
Former US Treasury Secretary Mnuchin (Credits: Leadership News)
Mnuchin, who served as Treasury Secretary under President Donald Trump, did not provide specifics regarding the composition of the investor group or TikTok’s potential valuation.
While major tech firms could theoretically afford to acquire TikTok, such a move would likely face rigorous antitrust scrutiny from regulators in both the US and China.
However, if the bill banning TikTok’s current ownership structure becomes law and survives legal challenges, it could reduce the acquisition cost.
Former US Treasury Secretary Mnuchin (Credits: NY1)
The bill, passed by the House with a significant majority, will now proceed to the Senate for further consideration. Senate Majority Leader Chuck Schumer has indicated that the measure will be reviewed thoroughly, consulting with relevant committee chairs to determine its path forward.
President Joe Biden has signaled his support for the bill, stating that he will sign it if Congress passes it. The legislation addresses concerns about TikTok’s ownership structure posing a national security risk, a claim that TikTok has consistently denied.
TikTok has maintained that it operates independently from the Chinese government and has not shared US user data with Chinese authorities.
Despite ongoing assurances from the company, the US government has yet to provide evidence substantiating claims of data sharing between TikTok and Chinese authorities.
