'%20x='0'%20y='0'%20height='100%25'%20width='100%25'%20%0A%20%20%20%20%20%20%20%20%20%20xlink%3Ahref='data:image/jpg;base64,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'%3E%3C/image%3E%3C/svg%3E)
On January 10, 2025, Shark Tank investor Kevin O'Leary posted a video clip on Instagram, featuring his Fox Business interview. In the clip, he expressed his view on the ongoing TikTok ban discussions in the United States. He highlighted how the situation presents a clear decision for TikTok's parent company, ByteDance, saying:
"That's good news for me actually. What that means is that the company goes into a binary decision as to whether to let it be shut down midnight on the 19th or engage with a buyer."
The Shark Tank investor explained that ByteDance now faces a "binary decision" – either allow the ban to take effect on January 19, 2025, or engage with a buyer. According to O'Leary, this pivotal decision centers around the value of American shareholder investments tied to the company.
Trending
Shark Tank investor Kevin O'Leary's perspective on the TikTok ban and ByteDance's critical decision
The current situation
The debate surrounding the potential ban of TikTok in the U.S. has intensified in recent months. According to BBC, the short-form video platform, owned by the Chinese tech giant ByteDance, has faced scrutiny over concerns regarding data privacy and national security. Amidst all this, the U.S. government is now looking forward to curbing or completely stopping the operations of TikTok within the country.
Sharing his viewpoint on the same topic, Kevin O'Leary mentioned in his Instagram post that ByteDance is left with only two alternatives; either permit the U.S. government to impose the ban or sell the company to a buyer.
In his interview, the Shark Tank investor emphasized that the decision could significantly impact the value of American investments tied up in ByteDance.
"We have given a viable offer last night to ByteDance and they may want to start considering it because there's 30 to $40 billion worth of American shareholders value tied up there," he wrote on his post.
He underscored that the company’s future hangs on the decision of China’s leadership, often referred to as the "Supreme Leader," who ultimately controls ByteDance's operations. O'Leary suggested that if the Chinese government chooses to shut down TikTok as it did in India, American investors could lose their capital.
The role of the Chinese government in ByteDance's future
O'Leary’s comments also shed light on the role of the Chinese government in the future of ByteDance. According to O'Leary, the Chinese government has the power to drastically affect the company’s global operations, and this control poses a challenge for global investors.
"If the Supreme Leader wishes to, we can just shut it off as they did in India and that capital gets erased," O'Leary said.
The Shark Tank investor highlighted that the inconsistency of Chinese government decisions can be problematic for long-term investors.
He further emphasized that if China’s leadership continues to make decisions, such as suddenly shutting down operations, it would undermine the confidence of global investors, including sovereign wealth funds. O'Leary pointed out that many of these funds have substantial investments in ByteDance.
"It's not just U.S. shareholders. Every sovereign wealth fund around the world, many of them have huge investments in ByteDance," he explained, underscoring the global significance of the ongoing discussions.
The offer to ByteDance and future steps
Despite the uncertainty, O'Leary confirmed that his team, along with other investors, has made a formal offer to ByteDance.
"Every single American shareholder has our offer. They know it," O'Leary stated.
This offer is reportedly part of an attempt to convince ByteDance to engage with a buyer and avoid the potential loss of capital. The Shark Tank investor emphasized that the ball is now in ByteDance's court, and the company must seriously consider the offer to protect its shareholder value.
O'Leary also commented on the legal issues surrounding the possible ban of TikTok. He said that the company's lawyers are very present in the process, following closely the arguments and the case's developments.
"I just got off with our lawyers on this thing," he said.
The Shark Tank investor added that ByteDance's lawyers' arguments concerning freedom of speech are not persuasive and he believes that a more viable solution exists.
"We'll make it very free speech. We'll make it way better and we'll make sure we abide by the order of the courts," he explained.
Catch all the new episodes of Shark Tank on ABC every Friday at 8 PM ET. Don’t miss out—stream the latest episodes anytime on Hulu!
