"You have to write it from scratch" — Shark Tank star Kevin O’Leary reveals TikTok’s algorithm wouldn’t be part of any deal

Shark Tank star Kevin O’Leary posted an Instagram reel on April 15, 2025, featuring a clip from his interview with Fox Business. In the caption, he spoke about legal restrictions around buying TikTok, mentioning that Senator Tom Cotton had confirmed buyers would not be allowed to use TikTok’s existing algorithm.

The rule, according to O’Leary, leaves potential buyers with only one option: start from zero. He added that no "indemnification" would be provided for using the current algorithm and described how high penalties made it too risky.

"If you're gonna buy TikTok you have to write it from scratch," he shared.

O’Leary concluded the post by referencing his interest in purchasing TikTok through a syndicate but said no progress could be made “until Xi talks.” The clip followed a series of similar posts where he’s outlined the legal and political complications tied to the platform’s potential acquisition.

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Shark Tank mentor Kevin O’Leary details what Senator Cotton told him about TikTok's algorithm

In the reel, Shark Tank star O’Leary repeated a message reportedly shared by Senator Tom Cotton:

"The TikTok deal's a very interesting situation 'cause the truth is we were told last week by Senator Cotton that no one could use the algorithm. He will not provide an indemnification because the penalties are so heavy," he wrote.

Kevin O'Leary explained that Congress had taken a firm stance on restricting the use of TikTok’s original code because it was built in China. O’Leary stated that no buyer would be protected under the law if they attempted to include the algorithm in the deal.

“If TikTok has to be part of the negotiation, let it be. There's a lot of syndicates, and I'm part of one, that wants to buy it, but we can't do anything until Xi talks,” Kevin added.

While some potential buyers, including O’Leary himself, are still interested, they cannot proceed under current conditions.

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Earlier post by Kevin highlights Supreme Court’s role and legal limits on buyers

In a reel shared on April 11, 2025, Kevin O’Leary posted a clip from his appearance on The Don Lemon Show, where he addressed the legal framework surrounding a possible TikTok acquisition. He spoke about the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA), which prevents any buyer from using TikTok’s existing algorithm.

O’Leary recalled Senator Tom Cotton’s comments:

"Listen we wrote this law, and then the Supreme Court ratified it nine to zero, and it says you cannot use the Chinese algorithm," and he's speaking specifically to people like me that want to buy TikTok,” he wrote.

Shark Tank mentor clarified that the ruling applies to all potential buyers, including his own investment group. According to him, Congress will not offer indemnity for legal risks, which makes the prospect of including the algorithm legally unviable. He added that the law's penalties are extensive:

“They would be sued 80 or $800 billion a year as per the penalties provided in the law,” he further wrote.

Shark Tank mentor O’Leary also talked about a previously discussed idea of a 50/50 ownership structure proposed by Donald Trump and supported by Project Liberty founder Frank McCourt. Although the model received interest from buyers, O’Leary said it would not be legally viable unless Congress changes the current law.

He concluded that while buyers are still open to exploring options, legal clarity and possible legislative amendments would be necessary for any future agreement.

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