amynicole – Billionaire entrepreneur Frank McCourt, known for his past ownership of the Los Angeles Dodgers, has teamed up with investor and “Shark Tank” star Kevin O’Leary to make a formal bid to purchase TikTok’s U.S. assets from its parent company, ByteDance. The group, named “The People’s Bid for TikTok.” Announced on Thursday that it had submitted its proposal to ByteDance but did not disclose the offer’s financial details.
This move comes at a critical moment as the U.S. Supreme Court prepares to hear arguments on a law potentially banning TikTok in the country if the platform is not sold by January 19. The legal challenge has placed TikTok under intense scrutiny. Amplifying calls for its ownership to shift away from its China-based parent company due to national security concerns.
Despite the urgency, the acquisition faces a significant hurdle: ByteDance has consistently stated that TikTok is not for sale. The company has repeatedly emphasized its commitment to addressing U.S. security concerns without divesting its ownership.
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Billionaire Group Makes Bold Bid to Acquire TikTok
Following the passage of a U.S. law that could ban TikTok starting January 19, 2025. Billionaire Frank McCourt and investor Kevin O’Leary have spearheaded “The People’s Bid for TikTok” to acquire the platform’s U.S. operations. Despite ByteDance’s firm stance against selling TikTok, the group submitted its proposal. Backed by Guggenheim Securities and influential figures like web inventor Tim Berners-Lee.
TikTok faces heightened pressure after President Joe Biden signed legislation in April 2024, citing national security concerns over the app’s ties to China. ByteDance responded by denying any plans to sell the platform, emphasizing that the law would impact the First Amendment rights of its 170 million monthly U.S. users. The company has formally challenged the law in the Supreme Court.
The McCourt-led group proposes to acquire TikTok’s U.S. version, excluding its signature algorithm, and rebuild it with American-designed technology. This approach addresses China’s export control rules, which require licensing to transfer sensitive technologies. McCourt expressed intentions to collaborate with President-elect Donald Trump to finalize the acquisition. However, ByteDance and TikTok have not commented on the bid.
McCourt-Led Group Pushes Purchase Without Algorithm to Avoid U.S. Ban
Frank McCourt’s “The People’s Bid for TikTok” aims to preserve the platform’s U.S. operations amid legal and political pressures. The group proposes acquiring TikTok’s U.S. assets without its famous algorithm, prioritizing minimal user disruption, privacy, and trust. This approach seeks to address national security concerns and avoid a complete ban set for January 19, 2025.
McCourt emphasized the group’s commitment to keeping TikTok accessible to millions of Americans, stating, “We look forward to collaborating with ByteDance, President-elect Trump, and the incoming administration to finalize this deal.” The initiative is supported by Project Liberty, McCourt’s organization focused on enhancing internet integrity, and has received backing from investor Kevin O’Leary and other stakeholders.
Despite the bold vision, questions linger about TikTok’s viability without its proprietary algorithm. The algorithm, which powers the app’s “For You” feed, is widely regarded as the cornerstone of its success. Critics argue that replicating its functionality may prove challenging, as other tech giants have failed to achieve similar engagement levels.
O’Leary dismissed skepticism, stating, “We want to eliminate the misconception that TikTok can’t sell without its algorithm. NOT true. We’ll build it ourselves and make TikTok wonderful again.”
