Kevin O’Leary Launches Crowdfunding Effort to Buy TikTok
In response to the recent US law requiring China-based ByteDance to divest from its US holdings and sell TikTok’s American-based operations, “Shark Tank” star Kevin O’Leary, also known as “Mr. Wonderful,” has announced his plans to buy TikTok with the help of investors through a crowdfunding effort. O’Leary, a renowned entrepreneur, is inviting potential investors to make a reservation on the StartEngine crowdfunding site to show their interest in supporting his quest to make TikTok an American-owned company.
Potential American Buyers Eyeing TikTok Acquisition
Kevin O’Leary is not the only US-based businessman interested in acquiring TikTok. Bobby Kotick, former CEO of Activision Blizzard, and Steve Mnuchin, former Treasury secretary under President Donald Trump, have also expressed interest in buying the popular app. However, TikTok’s parent company, ByteDance, has indicated a preference to shut down the app rather than sell it if all legal options are exhausted in their fight against the US law. President Biden has given ByteDance until Jan. 19 to find a US-based buyer for TikTok, with a possible extension of three months if progress is made in divesting US-based operations.
Challenges in TikTok Acquisition
While potential buyers are lining up to acquire TikTok, challenges remain in separating the app from ByteDance’s core algorithms, which are crucial to its operations. The parent company’s reluctance to sell TikTok lies in the complexity of disentangling the algorithms from the app’s US assets, as the intellectual property license is registered under ByteDance in China. This presents a significant hurdle in the acquisition process, as separating the algorithms would be a complicated procedure that ByteDance is unlikely to consider. Despite the interest from American buyers like Kevin O’Leary, the future of TikTok’s ownership remains uncertain as ByteDance explores its options in compliance with US regulations.