Technology
Friday, March 15th, 2024 3:31 am EDT
Key Points
- Former Treasury Secretary Steven Mnuchin is leading efforts to form an investor group aimed at acquiring TikTok from ByteDance amidst bipartisan legislation threatening TikTok’s existence in the U.S.
- The House of Representatives passed a bill that would compel ByteDance to divest TikTok or face a ban in the U.S., prompting Mnuchin to advocate for its sale, emphasizing the potential for U.S. ownership.
- TikTok’s significant user base in the U.S. and concerns over Chinese influence have sparked debates, with major tech investors criticizing the platform, while TikTok has fiercely opposed the legislation, and its CEO has implied resistance to a sale.
Former Treasury Secretary Steven Mnuchin is spearheading efforts to assemble an investor group aimed at acquiring ByteDance’s popular social media platform, TikTok. This initiative comes as bipartisan legislation progresses through Congress, posing a potential threat to TikTok’s presence in the U.S. The bill, passed by the House of Representatives, mandates ByteDance to either divest TikTok or face a de facto ban in the country. Mnuchin, leading Liberty Strategic Capital, expressed support for the legislation, asserting the necessity for TikTok’s sale to U.S. entities. Notably, there’s existing alignment between Liberty and ByteDance through SoftBank Vision Fund’s investment in both entities. Despite TikTok’s lobbying efforts and its CEO’s implications against a sale, Mnuchin advocates for U.S. ownership, contrasting with China’s stringent control over similar platforms. Lawmakers highlight concerns over TikTok’s vast U.S. user base and its potential for Chinese influence, while major tech investors have criticized its impact. The valuation of ByteDance at $220 billion in 2023 raises questions about TikTok’s worth, especially considering its algorithm’s pivotal role, developed in China, which could significantly affect its appeal in a potential sale. Mnuchin’s plans lack specifics regarding investors and valuation, although other interested buyers, such as former Activision Blizzard CEO Bobby Kotick, have surfaced. Mnuchin’s recent involvement in capital raises, including a $1 billion investment to stabilize New York Community Bancorp, underscores his financial activities post-Treasury Secretary tenure. Mnuchin’s tenure under the Trump administration witnessed antagonism towards TikTok, culminating in a data partnership with Oracle. Despite the regulatory and geopolitical challenges, the future ownership and fate of TikTok remain uncertain amidst shifting alliances and regulatory pressures.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/03/14/former-treasury-secretary-mnuchin-is-putting-together-an-investor-group-to-buy-tiktok.html
