Steven Mnuchin Reportedly Gathers Investors to Acquire TikTok
Reports indicate that former Treasury Secretary Steven Mnuchin is in the process of forming a consortium of investors to pursue the acquisition of TikTok.
Former Treasury Secretary Steven Mnuchin announced on Thursday that he is putting together a group of investors to make an offer to purchase TikTok.
This decision follows the House passing a resolution the day before to either ban the Chinese-owned social media platform or require it to be sold to a US-based owner.
Mnuchin shared with CNBC on Thursday morning his plans to assemble a group to acquire TikTok. Despite its lack of profitability, he emphasized that the platform holds significant value.
He mentioned his intention to offer current US investors the opportunity to retain their shares in TikTok, with a key condition that no single entity would have more than a 10% stake. However, Mnuchin chose not to disclose the identities of the individuals involved in the consortium he is forming.
"He said the Chinese would never allow a US company to own something like this in China. However, ByteDance, the parent company of TikTok, may not be allowed to be sold to any company outside of China. This is because the Chinese government started implementing measures in 2020. They consider TikTok a sensitive technology and officials have stated their opposition to any forced sale that would transfer ownership to a foreign entity."
Thursday's update on TikTok follows Mnuchin's recent $1 billion support for New York Community Bank. Mnuchin and TikTok have not yet provided comments in response to CNN's inquiries.
This is a developing story and will be updated.
Editor's P/S:
The proposed acquisition of TikTok by a group led by former Treasury Secretary Steven Mnuchin raises complex geopolitical and economic considerations. Mnuchin's emphasis on the platform's value despite its lack of profitability suggests that he sees it as a strategic asset. However, the Chinese government's opposition to a foreign sale underscores the political sensitivities surrounding the deal.
The Chinese government's concerns about TikTok's acquisition by a US entity stem from the platform's vast user data and its potential use for surveillance or influence operations. The Trump administration's earlier threats to ban TikTok reflect the heightened tensions between the US and China over technology and national security. The outcome of the proposed acquisition will likely hinge on the ability of the two sides to navigate these geopolitical complexities and find a solution that addresses both security concerns and economic interests.
