Steven Mnuchin Eyes TikTok Purchase Amid Legislative Pressure

Former Treasury Secretary Steven Mnuchin is spearheading an effort to assemble an investor group with the ambition of acquiring the popular social media platform TikTok from ByteDance. This move comes in the wake of recent legislative actions aimed at addressing national security concerns related to the app's operations in the United States.

On a recent episode of CNBC's "Squawk Box," Mnuchin revealed his plans to pursue the purchase of TikTok, stating, “I think the legislation should pass and I think it should be sold. It’s a great business, and I’m going to put together a group to buy TikTok.” This declaration follows closely on the heels of the House of Representatives' approval of a bipartisan bill. If enacted, this legislation would compel ByteDance to divest TikTok or risk the app being banned in the U.S.

The bill, which now awaits Senate consideration, has already received a nod from President Joe Biden, who indicated he would sign it into law. The proposed legislation underscores growing bipartisan concern over TikTok's influence in the U.S. and its potential use by the Chinese government for surveillance and influence operations. Currently, TikTok boasts a significant U.S. user base, estimated at 170 million Americans.

Mnuchin, currently leading Liberty Strategic Capital, has connections to ByteDance through the SoftBank Vision Fund, which invested in the company in 2018 and is also a partner in Mnuchin's firm. His stance on the matter is clear: "This should be owned by U.S. businesses. There’s no way that the Chinese would ever let a U.S. company own something like this in China."

The debate around TikTok's future in the U.S. has attracted commentary from major tech investors and lawmakers alike, with many expressing concerns over the platform's potential for negative influence. Despite this, the possibility of ByteDance selling TikTok to a U.S. buyer remains uncertain, particularly in light of statements from TikTok CEO Shou Zi Chew and China's Foreign Ministry, which have criticized the legislative efforts.

ByteDance's valuation stood at $220 billion in its last funding round in 2023. However, the specific value of TikTok's U.S. operations, especially without its powerful content delivery algorithm developed in China, could be considerably lower. Mnuchin has yet to disclose details about the potential deal's valuation or the identities of other investors involved.

The interest in TikTok is not limited to Mnuchin's group; reports suggest that other entities, including former Activision Blizzard CEO Bobby Kotick, are exploring acquisitions. Mnuchin's initiative marks his latest significant move since serving as Treasury Secretary under the Trump administration, which had also sought to address concerns regarding TikTok's operations in the U.S.

As the situation unfolds, TikTok's response to these developments remains to be seen, alongside the broader implications for U.S.-China relations and the global tech landscape.

TL;DR ⏳: Former Treasury Secretary Steven Mnuchin is orchestrating a bid to acquire TikTok through an investor group, amidst legislative efforts to force its parent company ByteDance to sell the app due to national security concerns. The move follows a House bill that could lead to TikTok being banned in the U.S. if not divested. With Mnuchin's ties to ByteDance investors and bipartisan concern over TikTok's influence and data security, the outcome of this acquisition attempt remains uncertain, especially considering potential resistance from the Chinese government and TikTok's own opposition to the bill.

For more on this, see the full report on CNBC.