On Thursday, Steven Mnuchin, the former Treasury Secretary, disclosed his initiative to assemble a team of investors with the aim of potentially acquiring TikTok. This revelation comes on the heels of a bipartisan bill overwhelmingly passed by House lawmakers, which seeks to compel ByteDance, TikTok’s Chinese parent company, to divest its ownership.
Mnuchin voiced his support for the Protecting Americans from Foreign Adversary Controlled Applications Act. This legislation stipulates that ByteDance must sell its stake in TikTok within a six-month period or face a complete ban in the United States. Reports from The Post indicate that Senate Majority Leader Chuck Schumer (D-NY) is under considerable pressure to expedite the bill for a vote.
During his tenure as a member of former President Donald Trump’s Cabinet, Mnuchin was involved in issuing an executive order mandating ByteDance to sell its stake in TikTok or risk being banned. However, President Biden later suspended this order. When asked about his current involvement with investors, Mnuchin stated that he was “working on it” and had “spoken to a bunch of people,” without disclosing any specific names.
Mnuchin emphasized the importance of TikTok being owned by US businesses, citing the unlikelihood of China permitting a US company to own a similar platform within its borders. TikTok has asserted its resistance to any forced sale and vowed to mount a legal challenge against the legislation if enacted. Even if ByteDance eventually decides to sell, potential buyers would face a substantial price tag, with TikTok’s US operations estimated to be worth $40 billion to $50 billion.
Downplaying concerns regarding Chinese government interference in a potential sale, Mnuchin asserted that the app would need to be “rebuilt in the US” post-acquisition. He also dismissed arguments against the bill’s 180-day timeframe for a forced sale, stating that “a lot can be done in six months.”
Mnuchin now joins a short list of known suitors for TikTok. Reports from earlier this week indicated that former Activision-Blizzard CEO Bobby Kotick had approached ByteDance regarding a potential sale. Additionally, experts suggest that large-cap companies like Meta, Google, and Microsoft could be logical bidders due to their substantial resources, although any attempts by Big Tech firms to acquire TikTok would likely face opposition from antitrust regulators.
Former President Trump, who previously expressed concerns about Facebook’s growing power, surprised many by stating his opposition to a TikTok ban.
