Kevin O’Leary Warns TikTok’s Fate Could be Determined by "Secret Golden Stake" That Gives Beijing Veto Power
Billionaire investor Kevin O’Leary, also known as "Mr. Wonderful" from the popular TV show Shark Tank, has sounded the alarm over concerns surrounding social media giant TikTok’s ownership structure. O’Leary has warned that a "secret golden stake" held by Beijing could give the Chinese government veto power over the company’s operations, potentially putting the platform’s very existence at risk.
O’Leary, who has invested in various tech startups, expressed his concerns in an interview with Bloomberg, stating, "If you’re a shareholder, you’re not really a shareholder. You’re a mouthpiece for the Chinese government. You’re a pawn in their game." He emphasized that the complex ownership structure, which includes multiple layers of investment entities, makes it challenging to determine who ultimately wields control.
The "secret golden stake" in question refers to a 9.2% stake held by a trust managed by the Chinese government, which was set up in 2019. This stake is controlled by Chinese tech giant ByteDance, the parent company of TikTok. O’Leary and other experts believe that this hidden stake gives Beijing the power to block any potential changes to the company’s ownership structure or decisions, effectively controlling the direction of the platform.
O’Leary’s warnings come as Beijing is already facing growing pressure from the US government to clarify the nature of its involvement with TikTok. The Chinese government has so far been tight-lipped about the ownership structure, sparking concerns about the potential for censorship, data privacy issues, and national security risks.
In recent weeks, US lawmakers have introduced bills aiming to ban TikTok, citing concerns over the spread of misinformation, disinformation, and potential security risks. The European Union has also launched an investigation into ByteDance’s ownership structure, amid allegations that the company is not transparent about its operations.
O’Leary urged investors to be cautious and consider the potential risks associated with investing in companies with hidden ownership structures. "If you don’t know who owns the company, you don’t know what’s going on. You’re just throwing your money into a black box," he warned.
The "secret golden stake" controversy has sent shockwaves through the tech community, with many experts calling for greater transparency and accountability from ByteDance and its ownership entities. As the debate around TikTok’s ownership structure continues to unfold, one thing is clear: the fate of the social media giant may depend on resolving this complex web of ownership and control.
In the end, investors and users alike are left wondering: what’s at stake for TikTok, and for the millions of users who rely on the platform to express themselves, share their creativity, and connect with others? As Kevin O’Leary so aptly put it, "If you don’t know the ownership, don’t invest. Period."
