Steven Mnuchin, the former US Treasury Secretary, previously revealed plans to assemble a team of investors aiming to purchase TikTok within six months. This urgency stems from a bipartisan House bill passed on March 13, which mandates the sale of TikTok to a US buyer within 180 days to avert a potential ban.
Lawmakers cite concerns over China's influence and data security as reasons for the proposed ban. However, the investor is held back by a certain aspect of the platform: its algorithm.
Can Mnuchin rebuild TikTok from scratch while ditching its one of the most important selling factors?
Ditching Algorithm on TikTok Acquisition
(Photo : Amir Levy/Getty Images)
JERUSALEM, ISRAEL - OCTOBER 12: Former US Secretary of the Treasury Steven Mnuchin speaks at Jerusalem Post's annual conference on October 12, 2021 in Jerusalem, Israel. The conference featured officials, diplomats and business leaders discussing the health, economic and security challenges facing Israel.
Despite Mnuchin's intentions, skepticism looms over the feasibility of his acquisition plans. With over 170 million active users in the US alone, TikTok is a valuable asset estimated to be worth $100 billion.
Mnuchin's proposal to reconstruct TikTok without its algorithm, a pivotal feature responsible for its success, raises doubts about the viability of the acquisition.
Related Article: Steven Mnuchin Leading Investor Group to Acquire TikTok Amid Legislative Threats, but What Did China Say?
Uncertainty Over Rebuilding TikTok
Mnuchin's strategy to rebuild TikTok within the US, thereby circumventing China's regulations on tech exports, remains vague. While Mnuchin believes that acquiring TikTok without its code could reduce costs, critics argue that the algorithm is integral to the platform's appeal and global reach.
Expert Opinions and Challenges Ahead
Tech experts caution that replicating TikTok's algorithm is a formidable task that even major companies have struggled with.
Matt Perault, a former Facebook executive, and current professor at the University of North Carolina, highlights the complexity of developing a successful algorithm like TikTok's, Business Insider reports.
Despite Mnuchin's optimism, the challenges of recreating TikTok's success within a six-month timeframe are considerable. It might be hard but it's possible, to say the least.
Ambiguity Surrounding Mnuchin's Plans
Mnuchin has provided limited details regarding his strategy for rebuilding TikTok, leaving many questions unanswered. While he asserts that "a lot can be done in six months," the specifics of his plan remain elusive.
Given TikTok's journey from its international launch in 2017 to its current status, doubts persist regarding the feasibility of Mnuchin's ambitious timeline.
In a separate report by The Washington Post, Mnuchin is somewhat hinting at the possibility of bypassing Chian's red tape on tech exports. He envisions accomplishing it by rebuilding TikTok as a brand-new video-sharing platform.
"This is like rebuilding Facebook - that's the task here. It can't be done in 180 days - or even years," " a source familiar with Mnuchin's pitch told the Post.
Requests for comments from Mnuchin and TikTok regarding their acquisition plans remain unanswered as of now. The lack of clarity surrounding Mnuchin's proposals and TikTok's response adds to the uncertainty surrounding the potential acquisition.
As stakeholders await further developments, the fate of TikTok in the US hangs in the balance amidst regulatory scrutiny and acquisition ambitions. It's going to be a "wild west" for Mnuchin and other investors who want to acquire TikTok and transform it into a new platform.
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