Steven Mnuchin, former U.S. Treasury Secretary, has announced plans to assemble an investor group with the aim of acquiring TikTok, a move that comes in response to a bill passed by the House of Representatives.
This bill, if it becomes law, would ban TikTok in the U.S. unless its China-based parent company, ByteDance, sells its stake in the app. Mnuchin believes that TikTok should be owned by U.S. businesses, asserting that there’s no way the Chinese government would allow a U.S. company to own such a platform in China. However, he has not provided details on the potential investors in his group or the valuation of TikTok.
The House bill, which passed with a vote of 352-65, now faces an uncertain future in the Senate, where its prospects are unclear. President Joe Biden has indicated that he would sign the bill if it reaches his desk. The bill’s passage has sparked concerns among civil liberties groups, including the American Civil Liberties Union (ACLU), which argues that banning TikTok would violate freedom of expression.
TikTok has consistently denied allegations that it could be used as a tool of the Chinese government, stating that it has never shared U.S. user data with Chinese authorities and will not do so if asked. The U.S. government has not provided evidence to support claims that TikTok has shared such information with Chinese authorities.
Previous attempts to acquire TikTok have faced challenges. In 2020, the Trump administration brokered a deal that would have seen U.S. corporations Oracle and Walmart take a large stake in TikTok on national security grounds. However, this deal did not go through due to legal challenges and stricter export controls imposed by China on its technology providers.
Mnuchin’s proposal to buy TikTok comes amidst a broader debate over the role of social media platforms in society, with concerns about disinformation and the protection of free speech. The fight over TikTok’s ownership and future in the U.S. reflects the strategic rivalry between the U.S. and China, particularly in areas such as advanced technology and data security.
Despite the challenges, Mnuchin’s plan to buy TikTok represents a significant development in the ongoing debate over the app’s future in the U.S. and its role in global technology and data security.
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