Shark Tank’s Kevin O’Leary Wants to Buy TikTok, Here’s How You Can Invest Too
With the Supreme Court preparing to weigh in on a potential TikTok ban in early January, President-elect Trump has asked SCOTUS to delay the deadline until after he takes office on the 20th, so he can help make a deal.
Kevin O’Leary, the “Shark Tank” investor affectionately known as “Mr. Wonderful,” has set his sights on TikTok. Amid growing national security concerns about the platform’s Chinese ownership, O’Leary has launched an ambitious crowdfunding effort, inviting everyday investors to join him in acquiring TikTok and transforming it into a US-owned enterprise.
O’Leary announced “Mr. Wonderful’s Plan to Buy TikTok” on the popular crowdfunding site StartEngine. Rather than asking for money upfront, O’Leary is inviting potential investors to reserve their interest in a “Regulation A+ Test the Waters” offering. This preliminary step gauges investor appetite before officially launching the fundraising campaign.
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“I’m Gonna Buy It”
O’Leary’s interest comes as TikTok faces a looming deadline set by US legislation. The app’s parent company, ByteDance, has until January 19, 2025, to sell TikTok’s US operations or face a nationwide ban. The Biden administration and bipartisan lawmakers have expressed concerns about data privacy and potential influence by the Chinese government.
Earlier this year, O’Leary confidently told Fox News:
“Not going to get banned because I’m gonna buy it.”
While firmly believing that TikTik will be sold rather than banned, O’Leary stated that it won’t be to Alphabet (NASDAQ: GOOGL) or Meta (NASDAQ: META) because regulators would block it.
TikTok boasts over a billion monthly active users worldwide, including 170 million in the US alone. The platform generates an estimated $16 billion annually in US revenue. Its unparalleled ability to drive engagement and set trends has made it a social media giant.
Big Names Eye TikTok
O’Leary isn’t the only one eyeing TikTok. Bobby Kotick, the former CEO of Activision Blizzard (NASDAQ: ATVI), and Oracle (NYSE: ORCL) co-founder Larry Ellison have previously considered acquiring the platform. Ellison even partnered with Walmart (NYSE: WMT) in 2020 in a failed bid to secure a stake in TikTok’s US operations.
Amazon (NASDAQ: AMZN) and Microsoft (NASDAQ: MSFT) have also been floated as potential bidders, though antitrust concerns may bar tech giants from participating. Meanwhile, Rumble (NASDAQ: RUM), a platform known for championing free speech, has publicly expressed interest in leading a consortium to acquire TikTok.
Underscoring the urgency of the divestiture, Representative Mike Gallagher stated:
“America’s foremost adversary has no business controlling a dominant media platform in the United States. TikTok’s time in the United States is over unless it ends its relationship with CCP-controlled ByteDance.”
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The Algorithm Dilemma
One major hurdle for any buyer is TikTok’s algorithm—a core component of its appeal. ByteDance has indicated it will not include the algorithm in any sale, complicating the platform’s valuation and operational viability. Analysts estimate TikTok could lose much of its current $35 billion valuation without the algorithm.
However, O’Leary sees an opportunity in this challenge.
Despite the complexities involved in rebuilding its technology, O’Leary emphasized TikTok’s immense potential, stating:
“This is worth billions; it’s one of the most successful advertising platforms in social media today. All my companies use it. I’ll buy it.”
Source: Fox Business YouTube
O’Leary’s TikTok Crowdfunding
Unlike traditional billionaires vying for control, O’Leary’s approach is uniquely democratic. His crowdfunding initiative allows participants to invest as little as $1,000 for a small equity stake in the company. This model opens the door for small business owners, influencers, and everyday Americans to own a piece of TikTok.
O’Leary’s initiative also aligns with broader industry trends. Companies like Walmart, which has maintained contact with ByteDance since its 2020 bid, recognize TikTok’s value as a digital marketplace. With TikTok’s integration of shopping features, brands like Walmart and Amazon could benefit from expanded consumer engagement.
Supreme Court Set to Weigh In
The fate of TikTok will likely hinge on the upcoming Supreme Court hearings scheduled for January 10, 2025. While ByteDance hopes to challenge the divest-or-ban law, slated to go into effect on January 19, 2025, analysts predict that a sale is inevitable.
TikTok believes the impending law requiring the app to be banned or sold to a non-Chinese buyer to be unconstitutional and is fighting back, filing a brief with the Supreme Court on Friday asking for it to be blocked.
President-elect and founder of Trump Media (NASDAQ: DJT) Donald Trump filed an amicus brief in support of TikTok asking the Supreme Court to delay the implementation of the new law until after his January 20th inauguration so he can “resolve” the situation through “political means.”
Trump, who targeted TikTok in his first term in office, has since softened his stance on the platform and reportedly wants to help make a deal. Earlier this month, it was also reported that Trump met with TikTok CEO Shou Zi Chew at Mar-a-Lago.
As O’Leary waits for the Supreme Court to weigh in, he remains steadfast in his mission to turn TikTok into a US-owned platform.
Signaling their commitment to keeping the acquisition entirely American, a source close to the deal said:
“This will be something that is purchased with only domestic money.”
With key players like Oracle, Walmart, and Rumble in the mix, the battle for TikTok is shaping up to be one of the most intriguing stories in tech and finance. Whether or not O’Leary succeeds, his crowdfunding strategy could redefine how major acquisitions are financed in the digital age.
For those eager to invest, O’Leary’s pitch is simple yet compelling:
“Join me, and let’s make history together.”
More information on the crowdfunding campaign “Mr. Wonderful’s Plan to Buy TikTok” can be found by visiting WonderfulTikTok.com.
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Disclaimer: Wealthy VC does not hold a position in any of the stocks, ETFs or cryptocurrencies mentioned in this article.
