Billionaire Frank McCourt reportedly secured $20 billion in pledges from investors for a potential Chinese-owned acquisition of TikTok, but a federal appeals court on Friday will force him to sell the app. The effort could gain momentum after Congress supported legislation.
McCourt's Project Liberty, an Internet-focused company that includes the for-profit sector and a nonprofit research organization, has secured “informal commitments of over $20 billion in capital.” Axios reports. The group reportedly plans to hold an investor roadshow in New York and San Francisco next week to drum up more support.
McCourt said his group is “uniquely positioned to assume control of TikTok” and will prioritize user safety if the deal is completed.
“The technology we're building respects individuals, not by surveilling them, but by giving ownership and control of their identity and data back to them,” McCourt told the outlet. .
“This is possible because we are not influenced by foreign actors, are not beholden to Big Tech, and support this powerful platform that is loved by more than 170 million Americans. Because we're building the necessary technology to do it,” McCourt added.
Project Liberty has not yet disclosed the names of the investors who provided the funding. The group reportedly engaged the services of Guggenheim Securities and law firm Kirkland & Ellis to assist with its bid.
The Post has reached out to TikTok for comment.
A three-judge panel ruled that a law requiring TikTok's parent company, ByteDance, to sell the app by January 19 or be banned from selling in the U.S. is unconstitutional. rejected the claim. Congress pursued divestment legislation over concerns that TikTok posed a national security threat.
TikTok denies the allegations. The law was passed in April despite frantic lobbying on Capitol Hill by TikTok.
It is widely believed that the group of US investors who successfully bought TikTok will need to rebuild the recommendation algorithm that powers the app. The Chinese government has stated that it opposes forced sales.
Former Treasury Secretary Steven Mnuchin has also expressed interest in acquiring TikTok and is in talks with investors about potentially putting together a bid.
TikTok argues that it is impossible to sell TikTok within the bill's limited time frame. The law gives the president the option to extend the sale for 90 days if there are signs of progress toward a deal.
Both the Justice Department and TikTok asked the court to issue a ruling by Friday to give them enough time to respond to the decision before the law takes effect. TikTok is expected to appeal the ruling to the Supreme Court.
In a separate development, President Trump, a longtime critic of TikTok, said he opposes the ban.
