Businessman, Kevin O’Leary, is putting together a bid to buy the Chinese-owned video sharing platform, TikTok.
The entrepreneur is reported to be putting together a syndicate for the potential purchase and told journalists that he was working on a bid of between $20 billion to $30 billion. According to CNBC News, this is “…an up to 90 percent cut in valuation from the company’s last funding round”. “It’s the largest entertainment and business network in America as it stands today, so it’s of great interest and great value,” O’Leary stated.
However, the deal isn’t likely to include the platform’s algorithms, added O’Leary. Any deal would also require the approval of the White House, which is currently considering a ban of the social media app in the US. This is because of security concerns, explains Inc.com, which wrote: “… a measure [is] gain[ing] traction in Congress to block TikTok from being offered on Google and Apple's app stores, along with [blocking] any new updates for the app. The latter would eventually render it unusable.” It adds that around 150 million Americans use TikTok.
The concern amongst US lawmakers is that the app is being used by the Chinese authorities to gather data on its US users. According to its website, TikTok stores user data in servers located in the US, Singapore and Malaysia. O’Leary says that he would move all of the servers to the US and appoint an American CEO. "If we make it all-American, including the servers, I can get this deal done," he told the press, adding: "I want to buy it."
The Wall Street Journal is reporting that the former CEO of Activision, Bobby Kotick, may also be a potential buyer.
TikTok was valued at $220 billion in 2023. It is not commenting on the rumours as yet.
