As political and regulatory pressures mount over TikTok’s future in the United States, Canadian businessman and television personality Kevin O’Leary has announced that he is on the verge of striking a deal to acquire the social media giant. The news comes amid increasing bipartisan calls for a nationwide ban on the app due to national security concerns. Here’s what we know so far about the potential deal and what it could mean for TikTok’s future in the U.S.

The Context: TikTok Under Fire

TikTok, owned by Chinese tech company ByteDance, has faced significant scrutiny in recent years over its handling of user data and potential ties to the Chinese government. Lawmakers and regulators in the United States have expressed fears that TikTok’s data collection practices could pose a risk to national security, citing the possibility that sensitive information could be accessed by the Chinese Communist Party.

These concerns have led to multiple legislative proposals aiming to restrict or outright ban the app. Just this month, bipartisan efforts have intensified, with senators introducing bills to give the federal government broader powers to address perceived risks posed by foreign-owned technology platforms.

Amid this climate of uncertainty, TikTok has struggled to reassure lawmakers and the public. The company has proposed a $1.5 billion plan to safeguard U.S. user data through a partnership with Oracle, but it remains unclear whether these efforts will be enough to stave off regulatory action.

O’Leary Steps In

Kevin O’Leary, best known for his role as a judge on the hit television show Shark Tank, revealed on Tuesday that he is in advanced negotiations to acquire TikTok. Speaking in an exclusive interview, O’Leary stated, “This is a once-in-a-lifetime opportunity to secure one of the most influential platforms in the world. TikTok is not just a social media app; it’s a cultural phenomenon and a critical tool for the next generation of creators and businesses.”

While O’Leary declined to provide specific financial details, he confirmed that he is leading a consortium of investors to fund the acquisition. Industry analysts estimate TikTok’s valuation to be in the range of $60 billion to $100 billion, making this one of the largest tech deals in recent history.

The Challenges Ahead

O’Leary’s potential acquisition faces several hurdles. For one, any deal involving TikTok would likely require approval from both U.S. and Chinese regulators. The Committee on Foreign Investment in the United States (CFIUS) has already been reviewing TikTok’s operations, and any sale would need to address its concerns.

Additionally, questions remain about how O’Leary’s group would manage TikTok’s complex technological infrastructure, including its algorithm—a key asset that has made the platform so successful. ByteDance has historically resisted transferring control of this technology, citing intellectual property concerns.

Implications of the Deal

If successful, O’Leary’s acquisition could dramatically reshape TikTok’s trajectory in the United States. By transferring ownership to a Western entity, the deal could alleviate some of the national security concerns that have fueled calls for a ban.

Moreover, O’Leary’s involvement could open new opportunities for monetization and innovation on the platform. Known for his sharp business acumen, O’Leary has hinted at plans to expand TikTok’s reach into e-commerce and digital payments, areas where the app has already seen success in international markets.

What’s Next?

As talks progress, all eyes will be on O’Leary and his consortium to see if they can finalize a deal. Meanwhile, lawmakers and regulators will continue to debate TikTok’s fate, with a potential ban still on the table if no satisfactory resolution is reached.

For TikTok’s millions of U.S. users, the stakes couldn’t be higher. Whether through acquisition or regulation, the app’s future hangs in the balance—and Kevin O’Leary might just be the person to tip the scales.

Published: 8th January 2024

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