Kevin O’Leary Offers $20B for TikTok Amid U.S. Ban
NEW YORK, NY - OCTOBER 3: Kevin O'Leary is seen out and about on October 3, 2024 in New York, New York. (Photo by MEGA/GC Images)
During an appearance on Fox News’s America’s Newsroom, Kevin O’Leary, an entrepreneur and Shark Tank star, boldly addressed the ongoing concerns about TikTok’s future in the United States by revealing he has offered $20 billion in cash to acquire the platform. The announcement comes as the popular social media app faces growing regulatory pressure from the U.S. Government.
TikTok’s Legal Challenges and National Security Concerns
TikTok was recently labeled a threat to national security, and a bill signed by President Biden required its Chinese parent company, ByteDance, to divest from it or sell it outright. On Friday, the Supreme Court upheld this law, effectively prohibiting TikTok from American app stores unless ByteDance complies. ByteDance’s deadline for action is on Sunday, which leaves little time for a resolution. O’Leary pointed out the legal and financial repercussions for companies that fail to comply with the new regulations.
“As of midnight on the 19th, any service provider … whether it’s Apple, Oracle, or even a consulting firm using video compression technology to support TikTok, is subject to $5,000 a day fine per user,” O’Leary said in his interview with anchor Bill Hemmer. “That’s over a billion dollars a day.”
O’Leary’s $20 billion bid shows his belief in TikTok’s immense value based on its massive U.S. market, which has 170 million users. The offer aims to guarantee the app’s continued operation in the U.S. ByteDance’s ownership alleviates national security concerns.
“There’s a reason they ruled in favor of it. It’s not worth taking the risk,” O’Leary said, referring to the Supreme Court’s decision.
TikTok’s popularity makes it difficult for companies and service providers to maintain operations past the government-mandated deadline. According to O’Leary, his proposal is a simple solution to a complicated and time-sensitive matter.
What’s Next for TikTok?
O’Leary’s offer is a source of further intrigue as ByteDance grapples with its options. TikTok may still be accessed in the U.S. Through an acquisition by a U.S.-based investor like O’Leary even though the timeline for a resolution is rapidly shrinking. The next few weeks will be pivotal as lawmakers, tech firms, and ByteDance navigate the high-stakes climate surrounding one of the world’s most influential social media platforms.
Supreme Court Upholds TikTok Ban Amid Acquisition Offers
Despite the approaching January 19 deadline, ByteDance has not announced any plans to divest its US assets. Operations. The Supreme Court’s decision to uphold the ban heightens the need for a resolution. According to CBS News, the outcome may be influenced by President-elect Donald Trump, who is set to take office shortly after the deadline.
According to reports, Trump may extend the deadline by 90 days to facilitate the sale to an American entity. Potential buyers such as Kevin O’Leary and Frank McCourt have expressed interest.
The situation remains fluid, and ByteDance’s response and potential U.S. Government actions are under scrutiny. The outcome will significantly affect TikTok’s 170 million American users and set a standard for foreign-owned technology companies operating in the United States.
