Former US Treasury Secretary Steven Mnuchin has announced plans to spearhead an investor group aimed at acquiring TikTok, in the wake of legislative pressures threatening to ban the popular social media platform from operating in the United States.
Just a day after the House of Representatives passed a bill that could effectively ban TikTok's presence in the US if its Chinese parent company, ByteDance, does not divest its ownership, Mnuchin disclosed his intentions during an appearance on CNBC's “Squawk Box.”
Mnuchin emphasised the importance of TikTok falling into American hands, asserting, "This should be owned by US businesses." He underscored the reciprocal challenges faced by American companies attempting to establish a similar presence in China.
Despite his statements, Mnuchin refrained from elaborating on the composition of the prospective investor consortium or TikTok's potential valuation.
TikTok, which boasts over 170 million users in the US alone, is grappling with increasing regulatory scrutiny due to its Chinese ownership. Concerns regarding national security risks associated with the app have prompted bipartisan action in Congress.
The House bill, passed by a substantial margin of 352-65, is now poised for consideration in the Senate. However, its fate remains uncertain as lawmakers deliberate on the implications and potential ramifications of such legislation.
Senate Majority Leader Chuck Schumer has pledged a thorough review process, indicating the need for consultations with relevant committee chairs to chart the bill's course forward.
President Joe Biden has signalled his willingness to sign the measure if it garners congressional approval.
Meanwhile, TikTok continues to rebut allegations of being a conduit for Chinese government surveillance. The company maintains its stance on data privacy, asserting that it has never shared US user data with Chinese authorities and vows not to do so if compelled.
(With inputs from AP)
First Published: Mar 14, 2024 7:39 PM IST
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