Kevin O’Leary, a Canadian entrepreneur, is looking to organize a group of investors to potentially acquire the social media network TikTok. He suggests a starting bid that would significantly decrease the valuation, maybe by up to 90%, compared to its previous investment round, which was between $20 billion and $30 billion.
O’Leary notes that this transaction would not include the user preference-based algorithms that have been important in TikTok’s success; “it’s the largest entertainment and business network in America as it stands today, so it’s of great interest and great value,” says Kevin O’Leary. Instead, it plans to acquire the profitable domestic brand and its huge user base.
However, due to the Chinese government’s unwillingness to sell the algorithms, any prospective buyer would need to recreate these algorithms using US code and transition the platform from its Chinese roots to a more localized American version, he said. “This means that any buyer will have to re-emulate these algorithms with US code and act as a steward to change the platform from TikTok China to TikTok USA,” he added.
O’Leary describes this probable acquisition as the most complex deal in the history of social media. He is interested in the task, particularly in creating a new algorithm for the platform. Regarding the prospect of a TikTok ban in the United States, O’Leary recognizes it, estimating at least a 50% chance. He also mentions the potential of a forced sale of TikTok shortly.
What would TikTok look like under American control? Remember when Elon Musk took over Twitter? He changed everything from the logo to the requirements for verification checkmarks and erased many verified accounts. Several journalists were also suspended. People had conflicting emotions. Some users complained Twitter felt more like Elon Musk’s personal platform than a tool of free speech. Could the same fate meet TikTok under O’Leary?
