Key Takeaways:
– Steven T. Mnuchin, the 77th U.S. Secretary of Treasury and founder of Liberty Strategic Capital, announced at the 2023 Milken Institute Global Conference his intention to form an investor group with the aim of acquiring TikTok.
– This announcement follows closely on the heels of the U.S. House of Representatives passing a bill that could lead to TikTok being banned in the U.S. unless ByteDance divests it.
– Mnuchin expressed his support for the legislation and his belief in the potential of TikTok as a business venture.
– The bill’s fate in the Senate remains uncertain, though it has been indicated that President Joe Biden would sign it into law if passed.
– Mnuchin’s past dealings include a significant investment in New York Community Bancorp through Liberty Strategic Capital.
– The Trump administration, under which Mnuchin served, previously took steps against TikTok, which led to a data partnership between ByteDance and Oracle.
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At the 2023 Milken Institute Global Conference held in Beverly Hills, California, Steven T. Mnuchin, who served as the 77th U.S. Secretary of Treasury and is currently a managing partner at Liberty Strategic Capital, revealed his plans to spearhead an investment group aimed at purchasing TikTok. This revelation comes in the wake of a recent legislative move by the U.S. House of Representatives. The House passed a bill necessitating ByteDance, TikTok’s parent company, to divest the social media platform, failing which TikTok could face a ban in the United States.
During a conversation with CNBC’s “Squawk Box,” Mnuchin voiced his support for the bill, emphasizing the value of TikTok as a business entity and his commitment to assembling a consortium to acquire it. He underscored the importance of the legislation’s passage and the subsequent sale of TikTok, highlighting the platform’s significant business potential.
The bill is currently on its way to the Senate, where its outcome is yet to be determined. However, indications from President Joe Biden’s administration suggest that the President would endorse the bill should it gain Senate approval.
Mnuchin did not disclose the identities of the potential investors in his proposed acquisition group. It’s worth noting that this endeavor is not Mnuchin’s first major investment move since his tenure at the Treasury concluded. Just last week, Liberty Strategic Capital, under Mnuchin’s leadership, played a pivotal role as a lead investor in a $1 billion funding round aimed at bolstering New York Community Bancorp.
During his time as Treasury Secretary in the Trump administration, Mnuchin was part of an administration that adopted a confrontational stance towards TikTok. This stance eventually led to ByteDance entering into a data partnership with Oracle. Interestingly, despite the administration’s initial opposition to TikTok, former President Donald Trump has recently voiced opposition to a ban on the platform.
This development is ongoing, and further updates are anticipated.