Former US Treasury Secretary wants to buy TikTok

Steven Mnuchin said Thursday that he is assembling a team of investors to make an offer to buy TikTok. A day earlier, the House of Representatives passed a bill to ban a Chinese app in the US or force its sale to a US buyer

by Sededin Dedovic
Former US Treasury Secretary wants to buy TikTok
© Sean Gallup / Getty Images

Former US Treasury Secretary Steven Mnuchin announced on Thursday his firm intention to form a coalition of investors with the aim of taking over the popular platform TikTok. The statement comes after the House of Representatives passed a bill that could ban the Chinese app in the United States or force its owner to sell it to an American entity.

"I think this is an extremely advantageous business move and I plan to gather a group of investors to create an offer for TikTok. While it is clear that TikTok may not be profitable right now, it is undeniable that it has tremendous value," Mnuchin said in an interview with CNBC.

He also announced that existing US investors would be given the opportunity to transfer their stakes in TikTok, with each entity limited to a maximum of 10% controlling stake. Mnuchin emphasized that China would probably not allow an American company to own something similar in their country.

This statement comes at a time when the Chinese government is showing resistance to the possible sale of TikTok to a foreign company, considering the app as a key and sensitive technology. Chinese officials have made it clear they will oppose any forced sale involving a foreign owner, CNN reported.

In addition, Mnuchin was an early proponent of the idea of a forced sale of TikTok to a US company, although he faced strong opposition from other members of former President Donald Trump's cabinet during the same proposal in 2020.

Let's also mention that Mnuchin was recently involved in managing the rescue operations of the regional bank New York Community Bank, whose value reached one billion dollars. A key factor standing between this potential transaction is the attitude of the Chinese government and parent company ByteDance, which owns TikTok.

It is expected that the decision on the eventual sale will be subject to complex negotiations and political pressures, both from the American and Chinese authorities. Meanwhile, this situation has caused a flurry of reactions and speculation in markets around the world, given the influence that TikTok has as one of the leading social media and entertainment platforms.

Many investors are carefully following every step in this process, aware of the potential consequences for the global economy and the technology sector.

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