Former Treasury Secretary Steve Mnuchin says he’s putting together investor group to buy TikTok
Former US Treasury Secretary Steven Mnuchin says he will put together an investor group to buy TikTok, a day after the House of Representatives passed a bill that would ban the popular video app in the US if its China-based owner the app does not sell. stake.
TikTok, which has more than 170 million U.S. users, is a wholly owned subsidiary of Chinese technology company ByteDance Ltd.
Mnuchin said Thursday on CNBC’s “Squawk Box” that he believes TikTok should be sold.
“This should be owned by American companies. There is no way the Chinese would ever let an American company own something like that in China,” Mnuchin said.
Mnuchin, the U.S. Treasury secretary under President Donald Trump, has not provided details on who else might be included in the investor group he plans to form, or on TikTok’s potential valuation.
TikTok did not immediately respond to a request for comment.
Big tech companies could afford to buy TikTok, but would likely face intense scrutiny from antitrust regulators in both the US and China. On the other hand, if the bill actually becomes law and survives the court’s First Amendment challenges, it could make TikTok cheaper to buy.
The House bill, which passed by a vote of 352 to 65, now heads to the Senate, where its prospects are unclear. Lawmakers in the House of Representatives had taken action over concerns that TikTok’s current ownership structure would pose a threat to national security.
Lawmakers in the Senate have indicated that the measure will undergo a thorough review. Senate Majority Leader Chuck Schumer, D-N.Y., has said he will have to consult with relevant committee chairs to determine the bill’s direction.
President Joe Biden has said that if Congress approves the measure, he will sign it.
TikTok has long denied that it could be used as a tool of the Chinese government. The company has said it has never shared U.S. user data with Chinese authorities and will not do so if requested. To date, the US government has also provided no evidence that TikTok shared such information with Chinese authorities.