Trump ally Steve Mnuchin plots Tiktok takeover

AN ALLY of Donald Trump is preparing a bid for Tiktok as US politicians move towards banning the Chinese-owned social media app within six months.

Steve Mnuchin, who served as treasury secretary under the former president, told CNBC he was gathering a group of investors to bid for the app.

On Wednesday, US politicians voted through a bill that would effectively ban Tiktok in the US unless its parent company, Beijing-headquartered Bytedance, agrees to sell the business.

The bill still needs to be voted on in the Senate, but President Joe Biden has signalled his support for the proposal.

Mr Mnuchin, a former Hollywood financier and investment banker, said: “I think the legislation should pass and it should be sold. It’s a great business and I’m going to put together a group to buy Tiktok.”

US officials have accused Tiktok of posing a risk to America’s national security. Senators have warned that Bytedance could be forced to hand over data to Beijing under China’s security laws.

Tiktok has always insisted it would refuse such a request and has spent billions on housing American’s data locally.

On Wednesday Bytedance’s chief executive, Shou Zi Chew, shared a video on the app, urging its users to contact their elected representatives to protest against the ban. “Keep sharing your stories, share them with your friends, share them with your family, share them with your Senators,” he said. US politicians have complained that their phones have been flooded by teenagers complaining about the planned bill.

Should the new law be passed, Tiktok is almost certain to mount a legal challenge. Any sale would be complicated by China, which has stated it would block a forced divestment of Tiktok from Bytedance, one of the country’s most successful tech exports.

If Bytedance is forced to sell Tiktok, it could command a price tag in the tens of billions of dollars. Its parent company, which is owned by a mix of Chinese shareholders and international investors, is valued at $220bn (£173bn).

Mr Mnuchin’s interest comes after an about-turn by Mr Trump, who had previously advocated for banning Tiktok. This week, he appeared to criticise efforts to block Tiktok, arguing it would only benefit Facebook.