News Karnataka
Wednesday, April 24 2024
Biz-Talk

Kevin O’Leary Eyes TikTok Purchase at 90% Off

TikTok
Photo Credit : Google

Businessman Kevin O’Leary, a Canadian, is trying to put together a syndicate in order to possibly buy the social media company TikTok. Starting bids could range from $20 billion to $30 billion, representing a 90% reduction in valuation from the business’s most recent funding round. The agreement would not include the user preference-based algorithms that have contributed to TikTok’s success, according to Kevin O’Leary, who also noted that the platform is highly valuable and the largest entertainment and business network in America at the moment.

Kevin O’Leary asserted, “This is the most complex deal ever in social media, and I have to build a new algorithm. It’s a very interesting deal, and I like it.”

But the Chinese government may not sell the algorithms, “so what you’re getting is the valuable domestic brand TikTok and 170 million users, with no data,” 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 said. This is why he sees a valuation cut in the platform.

This occurs after the US House of Representatives approved a bill that may require ByteDance, the owner of TikTok, to divest or risk being banned. However, the US Senate has not yet heard this legislation.

Regarding the ban, Kevin O’Leary stated that there is at least a 50% chance that it will be implemented and that an early January forced sale of the massive social media company is also a possibility. Additionally, he claimed to have spoken with Republican front-runner Donald Trump about the issue. Additionally, the businessman is scheduled to meet with US President Joe Biden, who is running for reelection.

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