The People’s Bid for TikTok Led by Frank McCourt Makes Formal Offer to Buy TikTok
Billionaire businessman and former Los Angeles Dodgers owner Frank McCourt, along with a group known as The People’s Bid for TikTok, has officially presented an offer to acquire TikTok from its parent company, ByteDance, based in China.
The proposal, backed by well-known investor Kevin O’Leary from “Shark Tank,” was unveiled on Thursday, aiming to purchase TikTok’s US assets. The exact value of the offer remains undisclosed.
This bid comes just ahead of a Supreme Court hearing on the legislation that could result in a ban on TikTok in the United States starting January 19 if it is not sold, following a legal challenge by the social media platform.
Despite ByteDance’s repeated statements that TikTok is not for sale, this offer may face significant hurdles in its execution.
ByteDance had put an end to speculations about a potential sale of TikTok after President Joe Biden signed the legislation in April, stating that there were no intentions to sell the platform. The company emphasized that the law, set to come into effect on January 19, 2025, would affect TikTok’s 170 million monthly American users and potentially infringe on their first amendment rights.
Responses to inquiries regarding the McCourt group’s bid from TikTok or ByteDance are still pending. TikTok, as the first Chinese social media app to achieve global success and compete with US tech giants, remains a prominent player in the social media landscape.
The People’s Bid, supported by investment giant Guggenheim Securities and tech pioneers like Tim Berners-Lee, aims to work with President-elect Donald Trump to finalize the acquisition. The group plans to purchase the US version of TikTok, excluding its algorithm, and redevelop it on American-built systems.
China’s opposition to the forced sale of TikTok was evident in response to a new export control regulation requiring a license for the sale of sensitive technologies. The People’s Bid anticipates a seamless transition for TikTok users, prioritizing privacy and trust on the platform.
Frank McCourt, through his organization Project Liberty, expressed optimism about the deal, stating that the group is ready to collaborate with ByteDance, President-elect Trump, and the incoming administration to ensure the platform’s continuity.
However, concerns have been raised about the effectiveness of a sale that excludes TikTok’s algorithm, a key component of the app’s success in curating content for users. The algorithm has been challenging for other tech companies to replicate.
Kevin O’Leary debunked the notion that TikTok is unsellable without its algorithm, asserting that the platform can thrive without it. The group is determined to restore TikTok to its former glory and provide a seamless experience for users.
