Steven Mnuchin, the former U.S. Treasury Secretary, has publicly expressed his intention to spearhead an acquisition bid for the social media platform TikTok. This announcement, made during an interview with CNBC, follows closely on the heels of legislative developments where the House passed a measure that could potentially ban TikTok in the U.S. or force its parent Chinese parent company ByteDance to sell it to an American entity.
In his statements, Mnuchin highlighted his perception of TikTok as a “great business” despite acknowledging its current unprofitability. He emphasized his strategy to assemble an investment group dedicated to acquiring TikTok, offering to let existing U.S. investors maintain their stakes in the company. However, he made it clear that no single entity would hold more than a 10% share in TikTok post-acquisition, though he refrained from disclosing the identities of the investors he plans to collaborate with.
Mnuchin’s move underscores the complex geopolitical and economic dynamics surrounding TikTok, owned by the Chinese firm ByteDance. He pointed out the improbability of China allowing a U.S. company to own a similar asset within its borders, reflecting on the stringent controls the Chinese government has placed on foreign ownership of its domestic companies, especially those considered as holding sensitive technologies.
The backdrop to Mnuchin’s ambitious proposal is a series of measures initiated by the Chinese government in 2020 aimed at protecting its technological assets. Officials have previously stated their opposition to any forced sale of TikTok that would result in the platform coming under foreign ownership, categorizing it as a sensitive technological asset.
This news emerges in the wake of Mnuchin’s recent involvement in a significant financial maneuver, where he orchestrated a $1 billion rescue package for the struggling New York Community Bank. His interest in TikTok marks a continuation of his active engagement in high-stakes financial and business dealings since his tenure as Treasury Secretary.
