Kevin O’Leary warns that TikTok’s fate could be determined by a “secret gold deal” that grants Beijing “veto” power

TikTok’s fate could be left up to Beijing thanks to a “secret” deal that grants the Chinese government leverage over any potential deal involving the platform, “Shark Tank” investor Kevin O’Leary told FOX Business on Monday

“There is something called a secret gold share that every Chinese company must issue to the leadership of the CCP. It is Xi (Jinping) himself, and it turns out that ByteDance cannot negotiate anything unless he has made a decision “, the O’Leary. Ventures president said “Morning with Mary” guest host Cheryl Casone.

“The secret part is a veto power over all the other shareholders,” he explained. “They have no rights once the secret part has been issued, so now we are dealing with what to do with the secret part, because until it decides what will happen, it does not matter what the shareholders think or CEO. or any of the management, is irrelevant is the secret golden part that determines the fate of TikTok.

KEVIN O’LEARY PUTS $20 BILLION TIKTOK CASH OFFER ON THE TABLE: ‘MOST INTERESTING, COMPLICATED, CAZY SITUATION’

The president of O’Leary Ventures, Kevin O’Leary, discussed the uncertain future of TikTok while appearing on “Mornings with Maria” on Monday. (Ting Shen/Bloomberg via Getty Images/Getty Images)

As The New York Times explainedin this arrangement, “the Chinese government buys a small share of a company’s equity in exchange for a seat on its board and veto power over certain company decisions.”

Speaking on the subject later on “Varney & Co.”, O’Leary said that the news may come as a surprise to other investors involved with Chinese companies.

“They are all subject to the holder of the secret gold share, and I think it contravenes some US securities laws, if you are listed on a New York exchange or NASDAQ or any other exchange,” he said.

“The rumor is today, here in Washington, that Lindsey (Graham) … is going to launch a bill on this very soon because we have learned a lot about this TikTok situation. There is no deal yet. This deal is now in the hands of Trump and Unfortunately, the option to extend 90 days is not currently in the existing law Property is not allowed by the order of the Supreme Court of 9 to 0 So … our hands are related as buyers, and we have to wait for the law, unless President Trump is able to change it.

TikTok has said to the contrary, however, that “an entity affiliated with the Chinese government owns 1% of a subsidiary of ByteDance, Douyin Information Service”, and says that the holding “has no impact on global operations of ByteDance outside of China, including TikTok.” according to Reuters.

The popular short video platform went dark for millions of users across the United States late Saturday after the Supreme Court, citing national security concerns, upheld a bipartisan law signed by President Biden last spring that required China-based app company ByteDance, to sell the platform or face a US ban.

While it was briefly blacked out, the app featured a shout-out to Trump, who had previously said he would “probably” give TikTok a 90-day extension from Sunday’s deadline after taking office.

PRIVACY GROUPS, EXPERTS, PARENTS LAUD SCOTUS BAN TIKTOK WHILE OTHERS SLAM DECISION ‘ANTI-DEMOCRATIC’

TikTok informed users on Saturday that it is no longer available due to the ban enacted in the United States, while President-elect Trump worked on a solution. (TikTok/Fox News)

The app returned hours later, but its future remains in limbo.

A few minutes after the Supreme Court’s decision, O’Leary put a $20 billion bid for the app on the table, arguing that selling it to an American syndicate is the “obvious solution.”

He told Casone that he had no negotiations with ByteDance thanks to the “golden share”.

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Alexandra Koch, Bradford Betz and Landon Mion of Reuters and FOX Business contributed to this report.