Steven Mnuchin, the former Treasury Secretary, recently announced his plans to assemble an investor group with the goal of purchasing TikTok. This news comes in the wake of the House passing legislation that could compel the app’s Chinese owners to sell the platform.
Mnuchin shared his intentions during a CNBC interview, describing TikTok as a “great business” he’s eager to acquire. His announcement did not reveal the identities of the potential investors he’s in talks with.
The push to buy TikTok aligns with broader concerns about the app’s ownership. The House’s recent bill aims to ban TikTok in the U.S. unless its parent company, Bytedance, sells it within six months. This legislative move stems from fears that China could access data on the millions of Americans who use the app, posing a national security threat.
Despite TikTok’s appeal and its significant valuation, Bytedance has consistently stated that the company is not on the market. However, the bill’s passage in the House, by a large margin, does not guarantee a smooth journey through the Senate. Should it become law, it’s expected to face substantial legal hurdles.
Critics of TikTok worry about the potential for the Chinese government to spy on users or disrupt U.S. elections. Bytedance, for its part, denies any such intentions, asserting it has never been asked by China to share American users’ data and would refuse such a request.
The question of who could afford to buy TikTok, valued at tens of billions of dollars, remains open. A purchase by a major tech company like Meta could be financially feasible but would likely attract antitrust concerns.
Before his tenure as Treasury Secretary, Mnuchin was a prominent figure on Wall Street and in Hollywood finance. Following his government service, he returned to Wall Street, recently investing over $1 billion in New York Community Bancorp with a group of investors.