O'Leary believes that this is the most complex deal ever in social media (Reuters)

Billionaire Kevin O'Leary is gathering a number of interested parties for a possible purchase of the TikTok platform, with an offer starting from $20 billion to $30 billion, which is less than the company's valuation in its last financing round by up to 90%, according to what was reported by the CNB website. bad.

The head of O'Leary Ventures said on CNBC's "Street" program that any deal for the short video sharing platform - which is worth $220 billion in 2023, according to PitchBook data - would... Pitch Book) for market research – likely to exclude algorithms based on user preferences that helped drive great success.”

“It's the largest entertainment and business network in America as it is today, so it's of great importance and great value,” he said on Friday.

But the Chinese government is unlikely to sell the algorithms, “so what you get is the valuable domestic brand TikTok and 170 million users, without the data,” O’Leary said.

The potential buyer will have to “re-simulate” those algorithms with American code and act as a “host” to convert the platform from “Tik Tok China” to “Tik Tok USA,” hence this low valuation, according to the report. .

Earlier in March, the US House of Representatives voted in favor of a bill that would force TikTok owner Byte Dance to either withdraw its leading global app or face an effective ban. However, it may take months before any TikTok-related legislation reaches the Senate.

It is also still unclear whether the Chinese government will allow ByteDance to sell TikTok to an American buyer. The company has lobbied vigorously against the bill.

However, O'Leary said there is at least a 50% chance the social media giant will be banned and forcibly sold early next year after the US presidential election, and he is preparing for that possibility.

Any potential deal would need the White House's blessing given its national security implications. O'Leary said he has already discussed the matter with presumptive Republican presidential nominee Donald Trump and plans to meet with Joe Biden, who is seeking a second term.

The O'Leary Ventures boss also said he was in talks with other parties interested in joining the buyout group, and that he would seek to engage with sovereign wealth funds starting in April.

Separately, former US Treasury Secretary Steve Mnuchin also expressed interest in purchasing TikTok.

“This is the most complex deal ever in social media, and I have to build a new algorithm,” O'Leary said. “It's a very interesting deal, and I love it.”

The report did not mention any response from TikTok to these statements.

Source: CNBC