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Former Treasury Secretary Steven Mnuchin is leading an effort to rescue TikTok from a potential ban in the United States by spearheading an investor group that aims to acquire the popular social media platform (via CNBC).

Mnuchin's move comes in response to bipartisan legislation that could force TikTok's Chinese owner, ByteDance, to divest its U.S. operations or face a ban.

Rescuing TikTok from Total Ban

The House of Representatives recently passed a bill mandating ByteDance to sell TikTok's US division, reflecting growing concerns among US lawmakers about the platform's ties to China.

With an estimated 170 million American users, TikTok has garnered attention for its significant reach and influence, raising worries about potential data privacy and national security risks.

In an interview with CNBC's "Squawk Box," Mnuchin expressed his support for the legislation and emphasized the importance of TikTok being owned by US businesses.

"I think the legislation should pass and I think it should be sold," Mnuchin stated. He further highlighted the strategic importance of TikTok and announced his intention to assemble an investor group to acquire the platform.

Mnuchin's investor group includes Liberty Strategic Capital, a firm with ties to SoftBank Vision Fund, a previous investor in ByteDance. However, the specifics of the deal, including other potential investors and the valuation of TikTok, remain undisclosed.

The potential acquisition of TikTok by Mnuchin's group raises questions about the platform's future and its impact on the broader tech landscape. TikTok, valued at $220 billion in its last funding round, represents a significant asset, particularly with its highly sophisticated algorithm that delivers tailored content to users.

Objections from China

Meanwhile, China has urged the United States to stop "unreasonably suppressing" TikTok, emphasizing the importance of respecting market principles and fair competition. Chinese officials have criticized the US legislation as potentially undermining global rules and order.

Despite China's objections, US officials and legislators have long expressed concerns about TikTok's national security risks, including fears that the platform could share user data with the Chinese government or manipulate content.

President Joe Biden has indicated his willingness to sign the legislation if it passes the Senate, further underscoring the bipartisan support for addressing TikTok's ownership.

The potential ban on TikTok in the United States reflects broader tensions between the world's two largest economies, with tech companies caught in the crossfire.

While China has historically blocked most US social media platforms due to non-compliance with its regulations, the tables have turned with the US seeking to impose restrictions on Chinese-owned apps like TikTok.

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