Steven Mnuchin’s Bid to Buy TikTok

Exploring a Purchase

Former Treasury Secretary Steven Mnuchin revealed plans on Thursday to form an investor group aimed at acquiring TikTok, a move intended to address national security concerns surrounding the app’s Chinese ownership.

Technology Understanding

During an interview on CNBC’s “Squawk Box,” Mnuchin expressed confidence in his understanding of TikTok’s technology and its potential as a business. He emphasized his intention to assemble a diverse group of investors for the acquisition.

Ensuring Control

Mnuchin stressed that the investor group would be structured to prevent any single investor from exerting dominant control over TikTok, thus addressing concerns about undue influence.

Policy Support

In a departure from former President Donald Trump’s stance, Mnuchin voiced support for a House bill proposing a ban on TikTok. However, he emphasized the need for an independent solution to avoid strengthening competitors or monopolies among US tech giants.

Legislative Action

The House passed the bill by an overwhelming majority, but its fate in the Senate remains uncertain. President Joe Biden has indicated willingness to sign the bill into law if it clears Congress. The legislation mandates ByteDance, TikTok’s parent company, to divest its US operations within 180 days.

Legal and Political Hurdles

The potential sale faces significant hurdles, including legal challenges from TikTok and regulatory barriers from China. Mnuchin acknowledged the complexities involved but remained optimistic about the acquisition.

Competing Interests

Mnuchin’s comments underscore the diverging perspectives within the former Trump administration regarding TikTok. While Mnuchin initiated efforts to ban the app, Trump has since shifted his stance, signaling potential support for the acquisition.

National Security Concerns

Echoing concerns raised by other officials, Mnuchin highlighted the national security implications of TikTok’s widespread presence on users’ devices. He hinted at classified information supporting his apprehensions about allowing TikTok under Chinese ownership.