Under pressure TikTok is reportedly a target of a bid by an American billionaire and a consortium to acquire its US assets.
Just 10 days before the TikTok ban in the United States goes into effect, billionaire Frank McCourt’s internet advocacy non-profit Project Liberty and a consortium of partners have announced a formal proposal (dubbed the ‘People’s Bid’) to buy the social media platform from Chinese owner ByteDance.
“Today, Project Liberty and its consortium of partners in The People’s Bid announced they’ve delivered a proposal to ByteDance to acquire TikTok’s US Assets,” they stated. “The proposal aims to preserve the platform’s vibrant community, while also giving 170 million American TikTokers the ability to control, protect, and benefit from their data.”
Frank McCourt is an American businessman and billionaire, and is former owner of the Los Angeles Dodgers and Dodger Stadium, and owner of French football club Marseille.
Financial terms of the deal were not disclosed, but more information about the bid can be found here.
“We’ve put forward a proposal to ByteDance to realise Project Liberty’s vision for a reimagined TikTok – one built on an American-made tech stack that puts people first,” said Frank McCourt. “By keeping the platform alive without relying on the current TikTok algorithm and avoiding a ban, millions of Americans can continue to enjoy the platform. We look forward to working with ByteDance, President-elect Trump, and the incoming administration to get this deal done.”
According to the statement, “Project Liberty plans to migrate TikTok’s user base to groundbreaking, American-built digital infrastructure that is designed to put people back in charge of their data and relationships.”
The group said the transition to this new infrastructure would be designed to minimise interruption for TikTokers and prioritise privacy and trust on the platform.
Project Liberty and its consortium said they were uniquely positioned to execute this vision as they had the financial capacity to complete the transaction; support from TikTok creators; and extensive backing from leading legal and financial advisors with strong experience navigating complex, high-stakes transactions on expedited timelines.
The proposal is the result of work by The People’s Bid for TikTok, an effort to bring together a broad coalition to reimagine TikTok and give Americans a voice, choice, and stake in the platform’s future.
Most recently, Project Liberty announced the addition of Kevin O’Leary, a world-renowned investor and entrepreneur, as a partner and advocate of The People’s Bid.
“I’ve spoken to all the potential bidders, and it’s clear to me that Frank McCourt and Project Liberty are the team to get this done,” said Kevin O’Leary, Chairman of O’Leary Ventures. “This is the bid that can save TikTok. Project Liberty has brought together the right people, the right vision and the right technology to avoid a ban. It is a win for all Americans.”
“Project Liberty is the right buyer for TikTok’s US business. We have the technology, resources, and team to complete a deal and protect TikTok’s position as a cultural cornerstone of the internet,” insisted Tomicah Tillemann, President of Project Liberty.
“While we respect ByteDance’s position to explore all legal options to retain its business in the United States, we believe that we are offering an alternative path that compensates its owners fairly and allows creators and small businesses to continue thriving,” said Tillemann. “We will refrain from publicly sharing the financial specifics of our offer until ByteDance is in a position to review our proposal. We believe our bid is the right path forward for the millions of Americans who want to continue using TikTok.”
On 24 April 2024, US President Joe Biden almost immediately signed a bill that gave ByteDance up to a year to divest TikTok, or face a nationwide ban across the United States, just a day or so after it was passed in the US Senate.
ByteDance is facing a divest deadline for a sale of TikTok by 19 January 2025.
Last month a US appeals court rejected TikTok’s effort to overturn the law that would force it to divest its business in the country or face a ban.
TikTok however has taken its appeal to the US Supreme Court, after previously warning that the US ban would have ‘staggering’ effects.
Earlier this week TikTok was reportedly planning to expand its e-commerce operation, TikTok Shop, into Mexico beginning in February, ahead of the US ban deadline.
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