Mark Cuban has been vocal about his skepticism, stating that O'Leary's bid for TikTok's U.S. assets is akin to chasing a dream with multiple setbacks ahead. He argues that without a solid revenue model or user engagement strategy, the bid could lead to significant losses. Moreover, he emphasizes the realistic perspective that ByteDance isn't likely to relinquish such a profitable asset when it has much to lose.
In his critique, Cuban emphasizes, 'Ad revenue isn't what it used to be. Relying solely on advertising to keep TikTok aflame in the U.S. seems overly optimistic.' He pointed out that the changing landscape of digital advertising makes it difficult for any platform to thrive solely on this revenue stream, which raises concerns about the feasibility of O'Leary's strategy.
Cuban warns, 'User retention will be tough without the original TikTok algorithm.' He noted that without the advanced mechanics that engage users, there would be nothing to keep TikTok's fanbase intact. Other platforms are aggressively vying for a slice of that audience, making retention even harder.
He also commented on the hurdles of convincing ByteDance to sell, stating, 'ByteDance likely won't sell; it holds a $300 billion asset that they won't part with for a fraction of its worth.' This note on valuation underscores Cuban's doubt regarding whether a feasible deal could be structured.
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