The illustration shows the TikTok logo displayed on a mobile phone screen.
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Canadian investor Kevin O’Leary remains interested in a TikTok deal but it’s impossible under current law, he told CNBC as President Donald Trump extends ban on social media platform deadline.
As part of a series of executive orders following his inauguration on Monday, Trump Implementation of law delayed by 75 days That would result in TikTok being effectively banned, giving his government “an opportunity to determine an appropriate course of action.”
Trump had promised to do this social media posts On Sunday, an agreement was also reached for the platform to remain active in the United States through a 50% U.S.-owned joint venture.
“I would love to work with Trump on a 50/50 deal, and so would every other potential buyer… But the problem with some of these ideas is that they are inconsistent with the Supreme Court ruling,” the investor said, as told by ABC Best known for her role on ABC’s “Shark Tank.”
O’Leary announced that he and “People’s bid for TikTok,“Frank McCourt, founder of the Liberty Project, took the lead in providing ByteDance with $20 billion in cash to acquire TikTok. “America’s Newsroom” on Fox News.
The proposed deal does not include ByteDance’s TikTok algorithm, which has been a key point of scrutiny by U.S. lawmakers, he told CNBC, adding that his team had an alternative algorithm.
ByteDance has yet to announce any deal to divest from TikTok ahead of Sunday deadline following Supreme Court hearing persist in this Protecting Americans from Applications Controlled by Foreign Adversaries Actor pafaka, This applies to TikTok.
McCourt confirmed to CNBC that the Project Liberty team remains “ready to work with the Trump administration, ByteDance and a consortium of U.S. partners to complete this critical transaction.”
He added: “The Liberty Project has a proven technology stack that is already operational and provides a clear path to address Congress’s national security concerns while keeping TikTok operational.”
legal obstacles
Companies related to TikTok had mixed reactions to Trump’s executive order. Service providers such as Oracle and Akamai are willing to keep TikTok online, while Apple and Google have yet to restore Bytedance-owned apps to their stores.
O’Leary said that while Trump’s extension of the ban may have provided protection for companies such as Oracle and Akamai, it was unclear whether ByteDance’s divestiture deadline would be extended.
“What we really need is not a 75-day extension. What we need is to go back and ask Congress to open the order and provide these new options, because those options are not being provided right now,” he said.
He added: “I would be happy to reach a deal if the law requires it, but I do not have the authority to violate congressional orders.”
Legal experts interviewed by CNBC agreed that the legal status of TikTok and Trump’s executive order remains uncertain, and any efforts to reach a TikTok deal may face challenges.
“The order does not appear to be consistent with the statute,” said Carl Tobias, a law professor at the University of Richmond. “Congress carefully put certain dates and procedures into law that the Supreme Court found to be constitutional.”
“As a result, a federal court may find that the order violates the law and invalidate it,” he said, but added that such action could take a long time if the government appeals to the Supreme Court.
Sarah Kreps, director of Cornell University’s Technology Policy Institute, agreed that the executive order was inconsistent with the Supreme Court’s ruling, adding that the order made no mention of progress on qualified divestitures.
Kreps said it wasn’t entirely wise for all parties to accept Trump’s assurances about the law and the Supreme Court’s ruling, given that people who violate TikTok laws could face billions of dollars in fines.
“They are definitely gambling with the law and have considerable faith in executive power,” she added.
Is China softening its stance?
O’Leary told CNBC that TikTok May be sold for US$20-30 billion When it launched last March, the discounts were huge because any sales would likely exclude the platform’s algorithm.
Rather, the value of the potential deal lies in the opportunity to acquire TikTok and its strong domestic brands. Over 100 million usershe said.
Still, as talk of selling TikTok grows, Beijing is seen as a major obstacle Bitbeat divestment.
However, Beijing recently said it was open to a deal that would see a U.S. company take ownership of the platform.
“In terms of corporate operations and acquisitions, we believe that companies should make independent decisions based on market principles,” a Beijing spokesman said on Monday when asked about President Donald Trump’s proposal.
O’Leary said any potential sale of ByteDance is still expected to be negotiated between Trump and Chinese President Xi Jinping.
“With TikTok, I have the authority to sell it or shut it down, and we will make that decision, and we may also have to get China’s approval,” Trump told reporters after the inauguration.
When signing the executive order, the president reportedly said he could impose tariffs on china If Beijing fails to approve the U.S.-TikTok deal. Stateside on Monday, he said he would consider Tesla CEO Musk or chairman of oracle Larry Ellison Buy TikTok.
Meanwhile, O’Leary told CNBC that he is still discussing a potential TikTok deal with U.S. lawmakers in Washington.
