“Shark Tank” investor Kevin O’Leary, known as “Mr. Wonderful,” has joined forces with Frank McCourt, founder of Project Liberty, in an attempt to acquire TikTok’s US assets from its Chinese parent company, ByteDance. Their goal is to “rebuild the platform in a way that prioritizes the privacy of its 170 million American users” and address national security concerns that have led to the threat of a ban on the app in the US.
This potential ban stems from the Protecting Americans from Foreign Adversary Controlled Applications Act, signed by President Biden after receiving bipartisan support in Congress. This law mandates the divestiture of TikTok from ByteDance by January 19, or face removal from U.S. app stores.
O’Leary’s involvement emphasizes addressing concerns about “Chinese spyware” and data security. He stated on “The Big Money Show” that McCourt’s expertise on algorithms is crucial, allowing them to “buy TikTok without buying the Chinese spyware.” This refers to allegations that TikTok, due to its Chinese ownership, poses a national security risk by potentially providing user data to the Chinese Communist Party. Lawmakers from both parties have voiced these concerns.
O’Leary and McCourt propose a significant restructuring of TikTok’s data practices. They intend to give users control over their data, allowing them to choose whether or not to share it. Crucially, O’Leary has stated that users who opt to share their data would be compensated, receiving “a piece of the advertising action.” This monetization strategy aims to incentivize user participation while addressing privacy concerns.
Bring TikTok back in India
Beyond data ownership, O’Leary outlined further plans in appearances on Fox Business. He envisions making TikTok interoperable with other platforms like Truth Social and X (formerly Twitter), allowing cross-posting. He also expressed a desire for reciprocal data sharing with platforms like Instagram and Meta, fostering a more interconnected social media landscape. He believes these changes, coupled with restoring user trust, could expand TikTok’s user base beyond its current 170 million. O’Leary also plans TikTok becoming “the world’s largest television network in a matter of two years” by attracting users from countries like India, Switzerland, France, Canada, and Germany, which have also expressed concerns about TikTok’s data practices.
The success of O’Leary and McCourt’s bid reportedly hinges on two key factors. First, the Supreme Court is reviewing the law mandating TikTok’s divestiture. O’Leary has indicated that a ruling upholding the law would be “good news” for their acquisition efforts, as it would force ByteDance to sell. Second, ByteDance’s willingness to sell if legally compelled remains a critical unknown. The Supreme Court heard oral arguments in a fast-tracked case and a decision is expected soon.
O’Leary also addressed the potential ramifications for China, emphasizing that damaging shareholder value would be counterproductive to China’s desire to be seen as a stable investment destination. He pointed out that global investors, including sovereign wealth funds, hold significant investments in ByteDance, making a forced sale with reasonable terms in China’s best interest.
In summary, O’Leary and McCourt’s bid represents a significant attempt to reshape TikTok’s operations within the U.S., focusing on user privacy, data control, and interoperability. The outcome depends on both the Supreme Court’s decision and ByteDance’s response, with significant implications for the future of the platform in the U.S. and globally.
