Steven Mnuchin, a former Secretary of the Treasury, announced on Thursday that he intends to form a team of investors to acquire TikTok. This follows a bill passed by the House that would prohibit the popular video platform from operating in the U.S. if its Chinese owner does not divest its ownership.

In a recent appearance on CNBC’s “Squawk Box,” Mnuchin, who worked for President Donald Trump, mentioned that he had discussed the idea of forming an investment group to acquire the popular social media platform. No further information about the potential members of the group or TikTok’s worth was provided.

According to Mnuchin, U.S. businesses should have ownership of this. He believes that China would never grant a U.S. company ownership of something like this in their country.

TikTok declined to comment on the request.

The House of Representatives approved the bill with a vote of 352 to 65. It will now move to the Senate, but it is uncertain if it will pass. Senators have expressed their intention to thoroughly examine the proposal. If it is approved in the Senate, President Joe Biden has stated he will approve it.

Members of the House of Representatives took action due to worries regarding the potential risk to national security posed by the ownership structure of TikTok. Politicians from both major parties as well as members of the current administration have expressed unease over the possibility that TikTok’s parent company, ByteDance, may be required by the Chinese government to provide data on its American users, promote pro-Beijing information, or censor content that goes against the Chinese government’s interests.

TikTok has continuously rejected accusations that it could be utilized as a means of Chinese government control. The company affirms that it has never disclosed American user data to the Chinese government and will not do so even when requested. Additionally, the U.S. government has yet to present any evidence proving that TikTok has shared any user information with the Chinese authorities.

When questioned if the Mnuchin group could alleviate worries about TikTok’s national security implications, John Kirby, a spokesperson for the White House’s national security team, stated that they are primarily focused on informing and offering details to the Senate.

Amid increasing tension between the United States and China, there is a growing dispute over the platform. This tension is rooted in a strategic competition, particularly concerning advanced technology and data security, which are crucial for both nations’ economic strength and protection of their national security.

If approved and made official, the proposed legislation from the House would require ByteDance to sell the platform within 180 days to a buyer approved by the U.S. government. It would also prevent ByteDance from managing TikTok’s algorithm, which suggests videos to users based on their preferences.

Along with Mnuchin, a few other investors, such as Kevin O’Leary from the TV show “Shark Tank”, have expressed interest in purchasing TikTok’s U.S. operations. However, analysts have suggested that it may be difficult for ByteDance to find a buyer who can afford the platform in just a few months.

Large technology corporations are in the most advantageous position to acquire this, but they would probably face close examination from antitrust regulatory bodies, as highlighted by Mnuchin.

During the interview, the speaker expressed concerns about having the control of this matter solely in the hands of large U.S. technology companies. They suggested that there could be potential issues with monopolies and recommended that this be handled by an independent entity in order to have fair competition. Additionally, they noted that users have a positive reaction to this and its discontinuation would not be well-received.

Additionally, he stated that the application would have to be reconstructed using new technology in the United States.

In many ways, social media companies have become battlegrounds for partisan disagreements about how to control disinformation while protecting free speech. Mnuchin’s effort to buy TikTok comes as Trump and his allies have long complained about what they see as social media muzzling conservative voices.

President Trump has expressed his disagreement with the House bill, stating that prohibiting TikTok would benefit its competitor, Facebook, which he has consistently criticized for his defeat in the 2020 election. Other Republicans who are against the bill believe that the U.S. should inform citizens about the security risks associated with TikTok, but ultimately leave the decision to use the app up to them.

In the meantime, certain Democrats have raised worries about targeting a specific company, as there are other social media platforms that also gather large quantities of data from their users. Critics of the proposed legislation argue that it could interfere with the livelihoods of content creators who depend on the platform for their earnings and potentially violate the First Amendment, which guarantees freedom of speech.

There have previously been other attempts to sell TikTok.

During Mnuchin’s tenure as Treasury secretary, the Trump administration reached an agreement in 2020 for U.S. companies Oracle and Walmart to acquire a significant portion of TikTok, citing national security concerns.

The deal would have also made Oracle responsible for hosting all TikTok’s U.S. user data and securing computer systems to ensure national security requirements are satisfied. Microsoft also made a failed bid for TikTok that its CEO, Satya Nadella, later described as the “strangest thing” he had ever worked on.

Instead of being resolved by Congress, the 2020 agreement was a reaction to various executive measures taken by Trump to address TikTok.

However, the intended sale did not occur due to various factors. Donald Trump’s executive orders faced legal challenges as the 2020 US presidential election approached. Additionally, China implemented more stringent export regulations for its technology companies.

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Matt O’Brien, Aamer Madhani and Ali Swenson from the Associated Press were contributors to this report.

Source: wral.com