‘Shark Tank’ Star Kevin O’Leary Launches Crowdfunding Campaign to Buy TikTok
In a surprising move, ‘Shark Tank’ star Kevin O’Leary has expressed his desire to buy TikTok and has launched a crowdfunding campaign to make it a collective effort. O’Leary announced the initiative on Tuesday, inviting individuals to reserve spots to become investors in the potential US version of the popular social media platform. While the campaign is not accepting any payments yet, it is a way to gauge interest in the venture. If the crowdfunding campaign moves forward, it will be subject to US regulations that restrict investors to individuals earning over $200,000 or possessing specific finance qualifications.
O’Leary’s Vision for TikTok and Potential Competition
O’Leary aims to democratize TikTok and ensure user data protection from foreign adversaries, as he expressed in a video posted on Instagram. His interest in acquiring TikTok dates back to March when he first signaled his intention to buy the platform, confident that it wouldn’t face a ban under his ownership. He dismissed the possibility of tech giants like Google or Meta acquiring TikTok due to antitrust concerns. While O’Leary’s new crowdfunding website doesn’t disclose fundraising goals or ongoing negotiations with TikTok, his bid may face competition from other interested parties, including former Los Angeles Dodgers owner Frank McCourt, former Treasury Secretary Steven Mnuchin, and Bobby Kotick, former CEO of Activision.
Valuation and Uncertainties Surrounding TikTok’s Sale
The valuation of TikTok’s US business remains uncertain, with estimates ranging from $100 billion to being immaterial to ByteDance’s revenue. Additionally, the platform’s value may diminish if sold without its proprietary “For You Page” algorithm, a key driver of its success. O’Leary has noted the challenges of acquiring TikTok from the Chinese government, which may retain control of crucial algorithms. Despite the uncertainties, O’Leary’s entrepreneurial background and strategic approach position him as a contender in the potential acquisition of TikTok.
In conclusion, Kevin O’Leary’s crowdfunding campaign to purchase TikTok underscores the growing interest in acquiring the popular social media platform amid regulatory challenges and valuation uncertainties. With diverse competitors eyeing TikTok’s US business, the future ownership of the platform remains a topic of speculation and strategic maneuvering in the tech industry.