Frank McCourt Eyes TikTok Buyout Amid Looming Ban to Revolutionize the Internet
As TikTok faces an uncertain future, with a Supreme Court-mandated sale deadline looming on January 19, Boston billionaire Frank McCourt sees more than a business opportunity – he envisions a revolution in how the internet works. Leading a coalition of investors, including “Shark Tank” host Kevin O’Leary, McCourt is vying to acquire TikTok’s U.S. operations from its parent company, ByteDance.
A $20 Billion Offer Amid TikTok’s Uncertain Fate
Last week, McCourt’s internet-focused advocacy group, Project Liberty, made a formal offer to ByteDance. Their valuation of TikTok – without its prized algorithm – stands at $20 billion. This comes as ByteDance’s global operations were estimated to be worth $268 billion in late 2023.
The pressure to sell stems from national security concerns over ByteDance’s Chinese ownership. The Supreme Court recently upheld a bipartisan law mandating TikTok’s sale or ban by January 19. Meanwhile, incoming President Donald Trump may attempt to delay the ban with an executive order.
McCourt’s Vision: A Decentralized Internet
McCourt’s ambitions extend far beyond owning one of the world’s most popular apps. He aims to create a decentralized internet where users, not corporations, control their personal data. Under this model, individuals would opt in to share data rather than having it collected without consent.
“The current internet takes data from us – scraped and stolen – without permission,” McCourt said. His vision, championed by Project Liberty since 2021, challenges the dominance of Big Tech by proposing a new framework where users own their “social graph,” the intricate web of personal data used by platforms to target content and ads.
The TikTok Transformation
If McCourt’s bid succeeds, TikTok would serve as a testing ground for this privacy-focused internet model. However, the app’s famed algorithm – the key to its user experience – would not be included in the sale due to Chinese export restrictions.
McCourt remains unfazed, stating that his team would develop a new algorithm aligned with their decentralized principles. The revamped TikTok would still rely on ad revenue but with a user-controlled data system, potentially making advertising more efficient.
Challenges Ahead: Building a New TikTok
Replacing TikTok’s existing algorithm poses significant technical hurdles. Social media experts argue that rebuilding an equally engaging recommendation system would require substantial time and expertise. Meanwhile, ByteDance has shown no interest in selling and has vowed to fight any forced sale.
Additionally, funding such a massive acquisition is no small feat. Project Liberty has secured significant commitments from investors and financial institutions, but questions remain about ByteDance’s shareholders and their willingness to participate in McCourt’s vision.
A Race Against Time
The January 19 deadline adds urgency to the situation, with the possibility of a sale being delayed through government intervention. McCourt and O’Leary hope to leverage their offer as a solution to keep TikTok operational while addressing national security concerns.
“We’re offering a path forward that aligns with U.S. interests and ensures TikTok’s survival,” O’Leary said.
A Grand Bargain or the End of the Line?
As TikTok’s fate hangs in the balance, McCourt’s vision represents more than a business deal – it’s a bid to redefine the digital landscape. Whether ByteDance agrees to sell, TikTok’s future remains tied to global politics, U.S.-China relations, and the ambitious aspirations of Frank McCourt and his allies.
