‘It'll be an American company’: Kevin O’Leary previously said he’d buy TikTok if a bill forcing the app's sale got Biden's signature — and now it has
TikTok’s widespread usage in the U.S. is under threat, as President Joe Biden signed legislation this week that could eventually see the popular short-form video app banned.
TikTok’s parent company, the Chinese-owned ByteDance, now has about nine months to sell the app or face a national ban.
But rather than getting rid of the app entirely, “Shark Tank” investor Kevin O’Lear has already proposed an alternative solution: he’ll buy it and make it a U.S.-owned company.
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“If this order goes through, it's got to be sold,” he said in an interview with Fox News last month. “I'm going to put up my hand and say 'I'll buy it.'”
O'Leary suggested creating a committee with representation from both political sides involved in the bill's creation to oversee the process for 18 months.
“What I'm proposing is purchasing these assets into a new American company,” he explained. “I'll guarantee the servers are on American soil. I'll guarantee we'll close the Chinese backdoors in the code. I'll guarantee it becomes safe for the users, the parents, small business and large business. It will be an American company.”
‘Nobody wants to lose the app’
The bill, known as the Protecting Americans from Foreign Adversary Controlled Applications Act, was overwhelmingly passed in the House of Representatives back on March 13, with a vote of 352 in favor and only 65 against, showcasing strong bipartisan support for the initiative in an attempt to curb national security risks.
The Senate then approved the measure 79 to 18 on April 23, before flipping it to President Biden for his signature the following day.
ByteDance has publicly criticized the bill. In a post on X, formerly known as Twitter, the company wrote, “The government is attempting to strip 170 million Americans of their Constitutional right to free expression. This will damage millions of businesses, deny artists an audience, and destroy the livelihoods of countless creators across the country.”
Apple co-founder Steve Wozniak agreed, calling out the "hypocrisy" of politicians calling for a TikTok ban. During an appearance on CNN, Wozniak said, "look at what we're accusing TikTok of and then go look at Facebook and Google... Facebook was a great idea, but then they made all their money just by tracking you and advertising."
O'Leary proposed a middle ground: keep TikTok running while permitting a small ownership stake for the Chinese.
“I would ask permission to leave 20, 30% with the Chinese people, because they'll have a non-control, passive position,” he said. “They will not control the board. They will have no say in how we operate the company, and therefore will resolve this issue around free speech. Nobody wants to lose the app.”
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What happens next with TikTok?
As it currently stands, Americans who regularly interact with the video-sharing platform can breathe a sigh of relief: it’s not going anywhere at the moment. ByteDance now has roughly nine months to divest the U.S. assets and seek out a buyer.
In a statement released on April 24, TikTok announced that it plans to challenge the law in court, which could result in a drawn-out legal process that could further delay a ban.
“We believe the facts and the law are clearly on our side, and we will ultimately prevail,” said TikTok CEO Show Zi Chew in a video posted on X. “Rest assured, we aren’t going anywhere."
However, one of the main areas of concern over a total ban is that it could be deemed a violation of parts of the Constitution that prevents Congress from taking aim at entities with legislation.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
