While the US Congress has a pending ban on China-owned TikTok (ByteDance), if the company is sold to a US entity, it may still operate in the country.
The fear is the tendrils of the Chinese Communist Party are utilizing TikTok to garner data from users while influencing young minds with nefarious algorithms. While this activity has not been fully proven, there are enough clues, and the fact that China operates as a totalitarian government means it is probably true.
It is not evident yet that TikTok will be sold to a US entity, but multiple parties are evaluating the possibility as the social media platform has emerged as one of the most popular Apps in the world with billions of users – at least 170 million in the US.
StartEngine has taken it upon itself to list a potential Reg A+ securities offering to help purchase TikTok. The offering is described as Mr. Wonderful’s plan to Buy TikTok. Mr. Wonderful, aka Kevin O’Leary, is a paid spokesperson for StartEngine, one of the largest securities crowdfunding platforms in the US. The offer page falls under the “Testing the Waters” (TTW) status – which means a possible offering may be pursued if enough indications of interest have been garnered by the investing public. No worries, though, if you change your mind, as the interest is not a hard commitment and is non-binding.
At the same time, any purchase of TikTok will be measured in billions of dollars. Under Reg A+, an issuer may only raise up to $75 million. So, there is a long way to go for sufficient funds to purchase the popular App. At the same time, it is not really clear if O’Leary has other commitments to make up the difference. Some estimates place the acquisition price at around $50 billion. A lot of money, even for Mr. Wonderful.
While novel, it would be surprising if anything ever became of this offering. Most likely, it falls under a marketing plan, so sites like ours cover the story. In that respect, it’s a huge success.
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