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Former Treasury Secretary Mnuchin Says He’ll Form a Group To Buy TikTok
March 14, 2024
Former Treasury Secretary Steven Mnuchin is organizing an investor consortium to purchase TikTok as bipartisan legislation looms over the fate of the social media platform in the U.S.
The House of Representatives recently passed a bill that could force ByteDance, TikTok’s parent company, to sell its flagship app or risk a ban within the country. Mnuchin, heading Liberty Strategic Capital, expressed support for the legislation, stating, “It’s a great business and I’m going to put together a group to buy TikTok.”
There’s a connection between Liberty and ByteDance, as SoftBank Vision Fund, a limited partner in Liberty Strategic, previously invested in ByteDance.
The bill now awaits Senate approval, with President Joe Biden indicating his willingness to sign it if it crosses his desk.
Mnuchin emphasized the importance of U.S. ownership, contrasting it with China’s regulations on foreign-owned companies.
Lawmakers have raised concerns about TikTok’s vast user base and its potential implications on U.S. national security, while tech investors like Peter Thiel and Vinod Khosla have criticized the platform. However, TikTok’s stance against a potential sale remains firm, with CEO Shou Zi Chew suggesting it’s not an option.
ByteDance’s last valuation stood at $220 billion, although a specific value for TikTok alone remains undisclosed. The app’s most crucial asset is its algorithm, which “delivers tailored content to users and was developed in China. Any sale of TikTok without the algorithm would be significantly less attractive to potential buyers.”
Details about other potential investors or the valuation of the deal remain undisclosed, although former Activision Blizzard CEO Bobby Kotick has also shown interest in acquiring TikTok.
Mnuchin’s recent involvement in a capital raise for New York Community Bancorp further underscores his active role in the financial sector.
During the Trump administration, tensions between the U.S. and TikTok were high, leading to negotiations between ByteDance and Oracle. However, recent developments have seen a shift in stance from Trump, who now opposes a TikTok ban.
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