With TikTok's future in doubt, billionaires are preparing to buy it and make it fully American.
In April, the Chinese-owned video-sharing app will either have to be sold by its owner ByteDance or be banned entirely in the US over concerns about how it uses people's data. A new law was enacted.
The Supreme Court is hearing the appeal in January, but “things are not looking good for TikTok,” said Joel Thayer, a tech policy lawyer and director of the Digital Progress Institute.
But the potential sale creates a huge “app opportunity” for U.S. investors. Frank McCourt, CEO of investment firm McCourt Global, told NYNext, “We've been building the technology for five years…We have the capital and the technology in place so we can now provide a better experience for TikTok users.” ” he said.
If TikTok is sold, ByteDance has already said that the super-addictive algorithm that keeps users hooked to the app will not be included in the sale.
Potential buyers will have a brand name, a video library, and a user base of millions, but the algorithmic technology will have to be created from scratch.
McCourt sees this as a way to reimagine apps like TikTok in an open source way and give people ownership of their data. He invested $100 million in Project Liberty in 2021 with the aim of achieving that. “I met with 20 major influencers on TikTok. We just had dinner in Malibu and they're excited about the prospect of gaining an audience,” he added.
Shark Tank judge Kevin O'Leary has also expressed interest in acquiring TikTok and is seeking support from small business owners on the platform through a crowdfunding effort. They're trying to put together a bid to keep the app from being owned for just billions of dollars. companies.
Participants can invest as little as $1,000 for a small stake in the company. “The buyer will probably be a combination of syndicates, and I've talked to almost all of them…we might be able to come together,” Kevin O'Leary told NYNext about a possible sale of TikTok. She talked about how she prepares for sex.
He is also eyeing the possibility of working beyond the U.S. border with India, the world's most populous country, which has also banned TikTok. [Prime Minister] Modi…they could partner with us,” O’Leary explains.
They see the opportunity to rebuild the algorithm from the ground up to create a new kind of platform that increases user control and curbs China's ability to spy on U.S. users.
TikTok's price has not yet been revealed, but potential buyers say it would be cheaper without the algorithm. “Without algorithms, there's no way it could even be worth $35 billion,” O'Leary added.
Both he and McCourt say they have the money to close the deal. However, the sale would require approval from China's Ministry of Commerce, which could pose further hurdles in the process.
One investor who could have an advantage on this front is Bobby Kotick, the former CEO of video game giant Activision Blizzard. Kotick is close to Elon Musk, has experience building and running tech giants, and has deep relationships with ByteDance's current investors.
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But people close to him say he is very cautious about promoting his bid publicly, at least until the Supreme Court's decision is announced.
A deal was signed in 2020 for Oracle and Walmart to acquire 20% of TikTok, but it was never completed. The companies remain tight-lipped about the possibility of participating in the bid, but Walmart CEO Doug McMillon remains in touch with ByteDance, the people said.
Meta and other big tech companies like Apple are not eligible to bid for the platform as it would be considered a violation of antitrust laws, sources said.
Former Treasury Secretary Steve Mnuchin previously said he was interested in buying the app, largely with backing from Saudi Arabia, but he distanced himself from a potential bid, the people added. Interested backers said they were focused on raising funds exclusively from U.S. buyers.
“It will be purchased only with domestic money,” a source said.
One person likely to play a key role in this sale is President-elect Donald Trump.
As The Post reported earlier this week, President Trump wants to keep his promise to “save” TikTok while also addressing national security concerns from Congress by helping broker the sale. .
Potential buyers are also confident in this point. “Trump is a dealmaker,” McCourt added.
