Mark Cuban is leaving no room for doubt when it comes to Kevin O’Leary’s plan to buy TikTok’s U.S. operations. The billionaire investor and “Shark Tank” star took to X to critique the bid, calling it a long shot and warning O’Leary about the risks involved. Cuban’s message to him is to think twice before diving into this deal, especially without a clear path to success.
Frank McCourt, the former owner of the Los Angeles Dodgers, has teamed up with Kevin O’Leary to buy TikTok from its Chinese parent company, ByteDance. Dubbed The People’s Bid for TikTok, their proposal aims to acquire TikTok’s U.S. assets, rebuild the app with American-designed technology and ensure user privacy.
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The bid comes at a critical time. The Supreme Court is set to review a U.S. law that could ban TikTok starting Jan. 19, 2025, unless it’s sold. However, ByteDance has repeatedly said it’s not interested in selling TikTok – and experts are also questioning 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 out. In his X thread, Cuban predicted that O’Leary would tell ByteDance and its bankers to accept the deal as a way to avoid TikTok being shut down in the U.S. However, Cuban doubts the viability of such a move, highlighting 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 U.S. operations isn’t realistic in today’s market.
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User retention will be tough: Keeping users engaged without the original TikTok algorithm will be a significant challenge, especially with other platforms eager to poach its audience.
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ByteDance likely won’t sell: Cuban doubts ByteDance would agree to sell TikTok, calling it a $300 billion asset that wouldn’t be off-loaded for a fraction of its value.
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Competitors are ready to pounce: With every major platform eyeing TikTok’s users, rebuilding from scratch will be an uphill battle.
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