Mark Cuban leaves no room for doubt when it comes to Kevin O’Leary’s plan to buy TikTok’s US operations. Billionaire investor and star of the movie “Shark Tank”. took to X to criticize the offer, calling it lengthy and warning O’Leary of the risks involved. Cuban told him to think twice before taking on this business, especially without a clear path to success.
Frank McCourt, former owner of the Los Angeles Dodgers, teamed up with Kevin O’Leary to buy TikTok from its Chinese parent company ByteDance. Entitled The People’s Bid for TikTok, their proposal aims to acquire TikTok’s US assets, rebuild the app with US technology and ensure user privacy.
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The offer comes at a critical time. The Supreme Court is ready for revision a US law that could ban TikTok starting January 19, 2025, unless it is sold. However, ByteDance has repeatedly said that it is not interested in selling TikTok – and experts also question whether the platform can survive without its famous algorithm, which is excluded from any potential sale due to Chinese export controls.
Mark Cuban doesn’t see O’Leary’s plan working. In his X thread, Cuban predicted that O’Leary would tell ByteDance and its bankers to accept the deal as a way to avoid shutting down TikTok in the US. However, Cuban doubts the viability of such a move, citing several major obstacles:
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Ad revenue isn’t what it used to be: Cuban argued that O’Leary’s plan to rely on advertising revenue to sustain TikTok’s US operations is not realistic in today’s market.
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User retention will be difficult: Keeping users engaged without the original TikTok algorithm will be a significant challenge, especially with other platforms looking to grab their audience.
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ByteDance is unlikely to be sold: Cuban doubts ByteDance would agree to sell TikTok, calling it a $300 billion asset that wouldn’t be relieved of a fraction of its value.
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The contestants are ready to attack: With every major platform eyeing TikTok users, rebuilding from scratch will be an uphill battle.
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