Potential TikTok buyer outlines vision for app as ban looms
As TikTok faces the possibility of a US ban, billionaire businessman Frank McCourt has come forward with a bold proposal to take over the app’s business model and secure its future in the American market. McCourt, former owner of the Los Angeles Dodgers, has revealed plans to lead a $20 billion bid for the Chinese-owned social media platform, supported by a consortium of investors.
TikTok’s fate currently hinges on a US Supreme Court decision that will determine whether the app’s parent company, ByteDance, must sell its US operations. If the court upholds a law signed by President Joe Biden citing national security concerns, TikTok could be banned by January 19 unless a sale occurs.
A user-centric business model
McCourt’s vision for TikTok marks a radical departure from traditional advertising-reliant platforms. The plan involves empowering users to control the type of ads and content they see, thereby shifting the platform’s revenue model.
“When you give permission for your data to be used and you receive compensation, it’s flipping this 180 degrees and giving the user the power,” McCourt told Reuters.
Future income streams could include e-commerce and licensing user data—with explicit consent—for artificial intelligence training models.
To address concerns over data privacy and transparency, McCourt’s strategy includes integrating TikTok’s technology into an open-source protocol developed by Project Liberty, an initiative he founded. This protocol would allow users to maintain control of their data and seamlessly move it across different online platforms.
Challenges to overcome
The proposal faces several obstacles. TikTok has repeatedly claimed that divestiture from ByteDance is not feasible. Additionally, China’s 2020 decision to include content recommendation algorithms in its export-control list complicates any sale. However, McCourt’s bid doesn’t include TikTok’s proprietary algorithm which would potentially ease negotiations.
Moreover, McCourt is confident the Supreme Court will uphold the law requiring TikTok’s sale, which he anticipates will make ByteDance more open to selling the app’s US operations.
Plans already underway
McCourt’s team has reportedly initiated discussions with potential CEO candidates to lead TikTok under its new structure. One source indicated that V. Pappas, TikTok’s former COO, was approached, although Pappas has not commented. McCourt declined to name other candidates but emphasized the importance of finding a leader who aligns with his vision for a user-centric internet.
“This is both a big project to scale the technology that we’ve built and a vision for a better internet,” McCourt explained. “We’re talking to people who share that vision and have the capacity and skills to do both.”
McCourt’s team has also engaged in preliminary talks with members of President-elect Donald Trump’s incoming administration. Trump, who initially sought to ban TikTok in 2020, has recently expressed a more favorable stance toward the platform, stating, “I have a warm spot in my heart for TikTok.” A spokesperson for Trump declined to comment.
The road ahead
With time running out, McCourt’s proposal represents a high-stakes effort to rescue TikTok from legal uncertainty while reimagining its role in the digital economy. Whether his plan succeeds or not, only time can tell.
