Kevin O'Leary expresses interest in a TikTok deal, but legal restrictions hinder the possibility of an acquisition.

• Trump proposed a deal to U.S. owners for them to own 50% of the platform, and O'Leary expressed interest in it.
• A deal is unlikely to occur under current laws, according to the Canadian businessman and investor.
• On Tuesday, Trump stated that he would evaluate the possibility of Elon Musk or Larry Ellison purchasing TikTok.

Despite the current legal restrictions, Canadian investor Kevin O'Leary remains interested in a TikTok deal, as President Donald Trump recently extended the deadline for a ban on the social media platform.

Trump postponed the implementation of a law that would ban TikTok for 75 days, giving his administration time to decide the best course of action.

On Sunday, Trump announced on social media that he would move to ban TikTok in the U.S., but also proposed a deal that would allow the platform to remain operational under a joint venture with 50% American ownership.

"The investor, known for his role on ABC's "Shark Tank," stated that he would love to work with Trump on the 50/50 deal, as would every other potential buyer. However, he noted that some of these ideas are inconsistent with the Supreme Court's ruling."

On Fox News' "America's Newsroom," O'Leary revealed that he, along with "The People's Bid for TikTok," led by Project Liberty Founder Frank McCourt, had presented ByteDance with a $20 billion cash offer to acquire TikTok.

He stated to CNBC that the proposed deal did not contain ByteDance's TikTok algorithm, which has been a focal point of investigation from U.S. legislators. He also revealed that his group had an alternative algorithm.

TikTok had not received any deals from ByteDance before the Sunday deadline, despite the Supreme Court upholding the PAFACA, which applies to TikTok.

McCourt stated to CNBC that the Project Liberty team was prepared to cooperate with the Trump Administration, ByteDance, and a group of American partners to complete the deal.

"Project Liberty's tech stack has been successfully implemented and provides a clear solution to Congress's national security concerns while allowing TikTok to continue operating," he stated.

Legal hurdles

TikTok service providers, such as Oracle and Akamai, have kept the app online despite Trump's executive order, while Apple and Google have not yet restored ByteDance-owned apps on their stores.

It is uncertain if ByteDance's deadline to divest will be extended, despite Trump's ban extension potentially benefiting companies like Oracle and Akamai.

He stated that what is truly required is not a 75-day extension, but rather for Congress to reopen the order and include new options, as they are currently not available.

He stated that he would be interested in making a deal if the law allowed it, but he couldn't break the order of Congress.

TikTok's legal status and the executive order's legality are uncertain, according to law experts who spoke to CNBC. Any attempts to make a TikTok deal may encounter obstacles.

According to law professor Carl Tobias at the University of Richmond, the Order does not seem to adhere to the statute, as Congress had specifically included certain dates and procedures in the law, which were later deemed constitutional by SCOTUS.

If a federal court determines that the Order violates the law, it could declare it invalid. However, if the government appeals to SCOTUS, the process could take a considerable amount of time.

Sarah Kreps, Director at the Tech Policy Institute at Cornell University, concurred that the executive order did not align with the Supreme Court's ruling, stating that it did not address advancements towards a complete divestiture.

It is not wise for parties to rely solely on Trump's assurances and SCOTUS's ruling regarding the TikTok law, as violators could face significant fines.

She remarked that they were taking a significant risk by trusting in executive power and potentially breaking the law.

China softens stance?

In March last year, TikTok was predicted to fetch between $20-$30 billion on the market, which was a significant discount, considering any sale would exclude the platform's algorithms.

He said that the value in a potential deal was the opportunity to acquire TikTok's strong domestic brand and its over 100 million users.

As TikTok sale discussions intensified, Beijing was viewed as a significant obstacle to ByteDance's divestment.

Recently, China has shown willingness to allow U.S. companies to acquire control of the platform.

According to a Beijing spokesperson, companies should independently decide on actions such as business operations and acquisitions, in accordance with market principles, as stated on Monday when responding to President Donald Trump's proposal.

The potential sale of ByteDance is expected to be negotiated between Trump and Xi Jinping, as per O'Leary.

Trump stated that he has the authority to either sell or shut down TikTok, and the decision will be made, possibly requiring approval from China.

The President reportedly suggested imposing tariffs on China while signing an executive order, and on Monday he said he would consider the possibility of Elon Musk or Larry Ellison buying TikTok.

O'Leary stated on CNBC that he was still in Washington working on a possible TikTok deal with U.S. lawmakers.