Former Treasury Secretary says he’s putting together group to buy TikTok
Former U.S. Treasury Sec- retary Steven Mnuchin says he’s going to put together an investor group to buy Tik- Tok, a day after the House of Representatives passed a bill that would ban the popular video app in the U.S. if its China-based owner doesn’t sell its stake. TikTok, which has more than 170 million American users, is a wholly-owned subsidiary of Chinese tech- nology firm ByteDance Ltd.
Speaking on CNBC’s “Squawk Box,” Mnuchin said Thursday that he believes TikTok should be sold.
“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,” said Mnuchin.
Mnuchin, the U.S. Trea- sury secretary under Presi- dent Donald Trump, didn’t provide details on who else may be included in the investor group he plans on forming or TikTok’s pos- sible valuation.
TikTok did not immedi- ately respond to a request for comment.
The House bill, passed by a vote of 352-65, now goes to the Senate, where its pros- pects are unclear. House lawmakers had acted on concerns that TikTok’s cur- rent ownership structure is a national security threat.
Lawmakers in the Senate have indicated that the mea- sure will undergo a thorough review. Senate Majority Leader Chuck Schumer, D-N.Y., has said that he’ll have to consult with relevant committee chairs to determine the bill’s path.
President Joe Biden has said if Congress passes 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 won’t do so if it is asked. To date, the U.S. government also has not provided evidence that shows TikTok shared such information with Chinese authorities.
While some others have voiced an interest in buying TikTok’s U.S. business — among them “Shark Tank” star Kevin O’Leary — there are a number of challenges including a 6-month deadline to get it done.
“Somebody would have to actually be ready to shell out the large amount of money that this product and system is worth,” said Stanford University researcher Graham Webster, who studies Chinese technology policy and U.S.China relations. “But even if somebody has deep enough pockets and is ready to go into negotiating to purchase, this sort of matchmaking on acquisitions is not quick.”
Big tech companies could afford it but would likely face intense scrutiny from antitrust regulators in both the U.S. and China. Then again, if the bill actually becomes law and survives First Amendment court challenges, it could make TikTok cheaper to buy.