Former US Treasury Secretary Mnuchin plans to acquire TikTok

Former Treasury Secretary Steven Mnuchin has announced plans to form an investor group to purchase TikTok, following the passage of a House bill that would ban the popular video-sharing app in the U.S. if its Chinese owner does not divest its stake. In an interview on CNBC’s “Squawk Box,” Mnuchin, who served in the Trump administration, stated that he had been in discussions with various individuals about creating an investor consortium to acquire TikTok. However, he did not disclose any specifics about the group’s composition or TikTok’s potential valuation.

Mnuchin emphasized the importance of TikTok being owned by U.S. businesses, citing concerns about Chinese ownership of critical platforms. The House bill, which was approved by a significant margin of 352-65, is now set to be reviewed by the Senate. If passed by the Senate and signed into law by President Joe Biden, the bill would require Chinese parent company ByteDance to sell TikTok to a U.S.-approved buyer within 180 days. It would also prevent ByteDance from controlling TikTok’s algorithm, which personalizes content for users.

Lawmakers have raised national security concerns regarding TikTok’s ownership structure, alleging that Chinese authorities could compel ByteDance to disclose user data, disseminate pro-Beijing propaganda, or censor content unfavorable to the Chinese government. TikTok has consistently denied these allegations and asserts that it has never shared U.S. user data with Chinese authorities. The U.S. government has not provided evidence to support claims that TikTok has engaged in such practices.

With the shifting landscape of U.S.-China relations, particularly in the realms of technology and data security, the battle over TikTok underscores broader strategic rivalry between the two global powers. Mnuchin’s proposed investor group, along with other potential buyers like Kevin O’Leary, could face challenges in acquiring TikTok within the designated timeframe, given the complex nature of the deal.

While big tech companies are considered prime candidates for purchasing TikTok, potential antitrust concerns have been raised. Mnuchin expressed reservations about major U.S. tech firms acquiring TikTok and emphasized the need for an independent buyer to ensure competition in the market. He also suggested that the app would need to be rebuilt with new technology to address security and privacy issues.

The debate surrounding TikTok reflects wider ideological divisions over social media regulation and free speech. Mnuchin’s initiative comes amid ongoing disputes over perceived bias against conservative voices on social media.