The U.S. government is concerned about TikTok's parent company ByteDance's relationship with the Chinese government, asking ByteDance to sell TikTok to a U.S. buyer by January 19, 2025, or it will be banned. Billionaire Frank McCourt has expressed interest in acquiring TikTok and plans to transform it into a user data protection-centered platform.
TikTok must be sold before Trump takes office
The U.S. government is concerned that ByteDance, TikTok's parent company, has ties to the Chinese government, which could lead to user data being accessed by the Chinese government. These concerns have led to multiple legislative and executive orders targeting TikTok, including a law signed by President Biden in April that states if ByteDance does not sell it to a U.S. buyer, the app will be banned due to national security issues.
According to the U.S. Supreme Court's deliberation, TikTok must be sold by January 19, 2025, or it will be banned in the U.S., and this date happens to be the day before Trump takes office.
TikTok CEO Shou Zi Chew recently met with Trump at Mar-a-Lago, while also requesting the U.S. Supreme Court to review the case. The High Court agreed this week to hear TikTok's legal challenges on January 10 (just 9 days before the ban is expected to take effect). This is the last effort, and Bloomberg analysts believe TikTok's chances of avoiding a ban are only 30%. However, as ByteDance exhausts legal options, it may be more inclined to seek buyers.
Billionaire McCourt hopes to acquire TikTok
Real estate mogul and former owner of the Los Angeles Dodgers, Frank McCourt, has become a strong and unexpected suitor for the app. According to Bloomberg, citing informed sources, they are even recruiting potential CEOs and have contacted former TikTok COO V. Pappas.
McCourt hopes to be that white knight. His proposal to acquire TikTok may pique interest as he does not want the algorithm of the app to be banned. Instead, McCourt believes he can create a better system, more akin to some of the decentralized platforms that have begun to emerge, such as Bluesky. These applications aim to allow users to choose from various sources and give them more control over their data and, most importantly, their follower lists.
According to previous reports, McCourt hopes TikTok can transform into a user data protection-centered platform. A consortium he leads is planning to utilize the decentralized social networking protocol (DSNP) based on Project Liberty to achieve this goal. This Project Liberty was founded by Frank McCourt, aiming to reclaim control over people's digital lives.
(U.S. billionaire plans to utilize Polkadot's parachain to decentralize TikTok)
McCourt even hosted a dinner in Malibu, California, where he pitched Project Liberty and TikTok 2.0 to the top 20 KOLs of the app, who collectively have over 100 million followers.
McCourt believes he is looking for solutions that can solve everyone's problems. 'China wins because they did not sell their algorithms. Shareholders win because they gain some value from U.S. platforms. Clearly, the user base wins, because Trump wins by fulfilling his promises. American citizens win.'
According to Bloomberg reports, potential buyers for TikTok also include Microsoft, Oracle, Amazon, and others.
This article on TikTok's imminent sale, McCourt's plan to acquire and push for a decentralized platform first appeared on Chain News ABMedia.
