An American consortium led by entrepreneur Frank McCourt has proposed to acquire the US operations of TikTok from its Chinese parent company, ByteDance.
This proposal comes ahead of the January 19 deadline, after which the platform faces a possible ban under legislation signed by President Joe Biden in April.
McCourt, through his organisation Project Liberty, spearheaded the move alongside a coalition of partners under “The People’s Bid”.
The consortium has not disclosed the financial details of the proposal but claims to have secured the backing of well-known private equity funds, family offices, and high-net-worth individuals. They have also secured debt financing commitments from a leading US bank to support the transaction.
In a statement, McCourt noted the importance of preserving TikTok’s operations in the US while ensuring data privacy and user control. “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,” he said.
The proposal includes plans to migrate TikTok’s 170 million US users to an American-built technological framework, which the consortium believes will prioritise data security and minimise disruption to users.
Kevin O’Leary, an investor and “Shark Tank” star who recently joined the effort, said: “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,” O’Leary stated.
The federal law mandating ByteDance to sell TikTok’s US assets or face a ban has prompted legal and political opinions. Former President Donald Trump’s administration had previously sought to ban TikTok over national security issues, and while Trump’s current stand favours resolving the matter diplomatically, the legal challenges persist.
A recent decision by the US Court of Appeals upheld the potential ban, and ByteDance continues to argue that the legislation infringes on First Amendment rights.
Tomicah Tillemann, president of Project Liberty, spoke on the vision of the bid, describing it as a solution to preserve TikTok’s cultural and economic contributions while meeting national security requirements.
“We respect ByteDance’s position to explore legal options, but we believe our bid offers a fair path forward that compensates its owners and ensures TikTok’s continued success in the United States,” he said.
