As TikTok’s future hangs in the balance, American billionaires prepare bids to take over the app. This follows a new law mandating that its Chinese owner, ByteDance, either sell the platform or face a potential ban in the United States over data security concerns.
The Supreme Court is set to hear final appeals in January, but tech policy lawyer Joel Thayer says, “It’s not looking good for TikTok.”
This looming deadline has created a massive opportunity for U.S. investors, and several high-profile figures have already made their intentions clear.
Frank McCourt, Executive Chairman of McCourt Global and Founder of Project Liberty, sees the potential for a new, improved TikTok, stating, “We have the capital and the technology to make it a better experience for TikTok users.”
However, ByteDance has clarified that the app’s addictive algorithm, a key part of its success, will not be part of the sale. Any buyer would only gain the brand name, a video library, and a vast user base—without the algorithm, which would need to be built from the ground up.
McCourt believes this presents a unique opportunity to build a new platform that operates on an open-source model and allows users to own their data.
He has already invested $500 million into Project Liberty, aiming to create a more user-centric approach to social media. “I’ve met with twenty major influencers on TikTok,” he said, noting their excitement about owning their audience.
Kevin O’Leary, known for his role on Shark Tank, is also interested in acquiring TikTok, but with a twist. He’s exploring the idea of crowdfunding the acquisition, allowing small business owners and regular users to own a stake in the platform.
O’Leary seeks to build a syndicate that could prevent TikTok from being dominated by multi-billion-dollar corporations. “We could join together,” he said of the potential investors.
Looking beyond the U.S., O’Leary has ambitious plans to connect with India, which has also banned TikTok, and see if a partnership with the world’s most populous country could help revive the app. “First thing, I’ll fly to India and talk to [Prime Minister] Modi,” O’Leary said.
Both McCourt and O’Leary see the opportunity to rebuild TikTok’s algorithm as a chance to create a new platform that offers users more control while limiting China’s influence.
However, the price of TikTok is uncertain, with some estimates suggesting it will be much cheaper without the algorithm. O’Leary has expressed scepticism about the app’s valuation, stating, “There’s not a chance in hell it’s worth even $35 billion without the algorithm.”
Despite investors’ enthusiasm, any sale of TikTok would require approval from China’s Commerce Ministry, adding another layer of complexity to the deal.
One potential investor with a significant advantage is Bobby Kotick, the former CEO of Activision Blizzard. Kotick has deep ties to Elon Musk and ByteDance investors, though sources say he is cautious about publicly pursuing a bid until the Supreme Court ruling is finalised.
While Oracle and Walmart previously attempted to purchase a stake in TikTok in 2020, both companies have remained quiet about re-entering the bidding process. Sources suggest that Walmart CEO Doug McMillon has maintained communication with ByteDance.
Tech giants like Meta and Apple are excluded from bidding, as acquiring TikTok would likely be considered an antitrust violation. Former Treasury Secretary Steve Mnuchin also showed interest in purchasing the app with funding from Saudi Arabia but has since stepped back from the process.
As the bidding heats up, one figure poised to play a key role is President-Elect Donald Trump. Trump, who has prioritised ” saving” TikTok while addressing national security concerns, could help broker the sale. McCourt, a potential buyer, believes Trump’s involvement could be crucial. “Trump is a dealmaker,” he remarked.
As the deadline approaches, TikTok’s fate remains uncertain, but it’s clear that U.S. investors are eager to seize the opportunity to reshape the platform in their own image.
