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Kevin O’Leary Interested in TikTok Deal, But Current Law Makes It Difficult
Canadian investor Kevin O’Leary, known for his role on ABC’s “Shark Tank,” is still interested in a potential deal for TikTok, but current U.S. law makes it difficult, he told CNBC. The he has offered ByteDance $20 billion in cash to buy the platform, but the deal does not include the company’s algorithm, which has been a point of scrutiny for U.S. lawmakers.
President Donald Trump extended the deadline for a ban on TikTok by 75 days, allowing for “an opportunity to determine the appropriate course of action.” O’Leary believes that a 50/50 deal, where an American company takes a 50% stake in TikTok, could work, but the current law does not permit such a deal.
O’Leary and his group, Project Liberty, along with founder Frank McCourt, are working to keep TikTok online, but legal hurdles remain. Trump’s executive order does not comply with the Protecting Americans from Foreign Adversary Controlled Applications Act, or PAFACA, which was signed last year.
Law experts agree that the legal status of TikTok and Trump’s executive order is uncertain, and any efforts to make a deal for the platform could face challenges. The Supreme Court upheld PAFACA, and ByteDance needed to divest its ownership of TikTok by a Sunday deadline or face a ban.
In terms of China’s stance on the deal, O’Leary believes that Beijing is open to a deal that would give U.S. companies ownership of the platform. The Chinese government has signified its willingness to consider a deal, saying that companies should make decisions independently in accordance with market principles. O’Leary expects any potential sale to be negotiated between Trump and Chinese President Xi Jinping.
While O’Leary is interested in a deal, he believes that the current law needs to be changed to allow for a 50/50 deal or the platform will have to be closed. He is working with U.S. lawmakers to amend the law and make a deal for TikTok possible.