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Former Trump Administration Official Steven Mnuchin Forms Investment Group to Potentially Purchase TikTok
Former Transportation Secretary Steven Mnuchin from the Trump administration is reportedly organizing an investment consortium with the aim of acquiring TikTok in case the application is eventually divested by its owner associated with the Chinese Communist Party.
Bipartisan Bill Passed in House Requires TikTok Sale
The announcement comes following the approval of a bipartisan legislation in the House of Representatives, aimed at compelling the sale of TikTok by its Chinese parent company ByteDance or facing a nationwide prohibition within the United States. The Protecting Americans from Foreign Adversary Controlled Applications Act was convincingly passed in the House with a vote of 352-65.
Concerns have been raised by both Republicans and Democrats who perceive TikTok as a potential national security hazard. However, critics from various political factions have scrutinized the bill for its broad scope and the potential excess of power it may grant to the executive branch concerning censorship.
Possible Future of TikTok in the U.S.
The White House has stated that if the bill advances through the Senate, President Joe Biden will sign it into law. Consequently, six months after the bill’s signing, ByteDance will be compelled to dispose of its 170 million American users or seek a buyer located outside China, North Korea, Russia, or Iran—countries currently identified as adversaries to the United States and its interests.
Steven Mnuchin expressed on CNBC his aspiration to potentially acquire the video-sharing platform along with other investors. While on “Squawk Box,” the former member of the Trump administration affirmed his endorsement of the bill for the sale of TikTok, stating, “I think the legislation should pass and I think it should be sold.”
Ownership and Investment Considerations
Liberty Strategic Capital, Mnuchin’s investment group, holds business relationships with ByteDance through Softbank Vision Fund. Mnuchin stressed the necessity of U.S. ownership for TikTok, highlighting the improbability of Chinese authorities allowing a U.S. entity to own a similar platform in China.
Although the financial input required for acquiring TikTok remains undisclosed by Mnuchin, the platform was recently appraised at $220 billion. Potential investors in the acquisition might face significant obstacles ahead, with the Senate’s stance on the bill still pending, amidst TikTok CEO Shou Zi Chew’s comments that selling the app is not an option.
Speculations on Beijing’s authorization of such a sale persist, underlining the complexities that lie ahead for Mnuchin’s investment group and any potential bidders interested in TikTok.
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