"It changes by the hour" — Shark Tank investor Kevin O'Leary shares update about TikTok USA

Kevin O'Leary, a prominent Shark Tank investor, recently provided an update on his ongoing efforts to purchase TikTok USA, alongside Frank McCourt. O'Leary emphasized that the situation is evolving rapidly. On January 30, 2025, he posted a clip of his interview with Fox Business on Instagram.

"Well, people don't understand about this deal and it changes by the hour," he said.

O'Leary's comments highlight the uncertainty surrounding TikTok's operations in the U.S. and the complex nature of the ongoing negotiations.

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Shark Tank investor Kevin O'Leary shares insights on TikTok USA's ongoing negotiations and challenges

ByteDance's ownership and potential risks

The Shark Tank investor began by providing insights into ByteDance, the parent company of TikTok, underscoring its massive market value.

"ByteDance itself is a very successful company. It's worth about $250 billion, of which only 8.9% is TikTok USA," he explained.

This statistic indicates that TikTok USA, while significant, represents a small fraction of ByteDance's overall valuation. O'Leary further noted that ByteDance has the option to discontinue TikTok USA at any time without a substantial impact on its global market value.

"So while we're focused on TikTok USA, the company could abandon it and just turn it off if they wanted and it wouldn't really change the market cap of the underlying ownership," O'Leary stated.

The Shark Tank investor highlighted the precarious position of TikTok USA, dependent on the decisions of ByteDance's leadership.

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The role of Kevin O'Leary and Frank McCourt

In the interview, O'Leary revealed that he and Frank McCourt were the only individuals who had made a formal offer to address the future of TikTok USA.

"There's been a lot of hype from everywhere else, but Frank McCourt and I are the only ones that actually made an offer," O'Leary clarified.

Despite various speculations, the two investors appear to be the only ones actively pursuing a solution. O'Leary also discussed the complexities of negotiating with ByteDance's founders and adhering to U.S. law.

"It's clear to me now that we're going to have to do a dance between the original owners, the founders of ByteDance itself, and interpreting the law of what Congress and Supreme Court has upheld," he noted.

According to the Shark Tank investor, this negotiation process is critical to ensure that any potential deal complies with U.S. regulations.

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A joint venture model for TikTok USA

To secure TikTok USA's future in the U.S., O'Leary emphasized the need for a joint venture (JV) model that respects both Chinese and U.S. legal requirements.

"To save TikTok US, it's got to be a joint venture with the Chinese guys, except it's got to be in a way that's compliant with the law in the US," O'Leary explained.

This JV model would allow TikTok to continue operations under a structure that satisfies both business and regulatory expectations. O'Leary also pointed out that he and McCourt's expertise makes them key players in this process.

"I think Frank and I are the only conduit to do that because we know we can't buy the algorithm," he stated.

Their understanding of the situation places them in a position to broker a deal that could preserve TikTok's U.S. operations while navigating the complexities of both U.S. and Chinese interests.

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