U.S. billionaire Frank McCourt is leading a transformative plan to bid for TikTok, the Chinese-owned video-sharing platform, as he prepares for a complete overhaul of its business model. McCourt, best known for his former ownership of the Los Angeles Dodgers, has secured verbal commitments totaling $20 billion from a group of investors to rescue the app from its ongoing legal troubles. These developments come as TikTok faces the looming threat of a forced sale due to U.S. national security concerns.
In an exclusive interview with Reuters, McCourt outlined his vision for a reimagined TikTok that would shift the power dynamics between the platform and its users. Central to his plan is a revamped advertising model that would give users more control over the ads and content they see. By offering users the ability to manage their content preferences, TikTok could also diversify its revenue streams through e-commerce and the licensing of user data for artificial intelligence (AI) training. Crucially, McCourt emphasizes that users would have to consent to the use of their data, and in exchange, they could receive compensation.
“When you allow your data to be used, and you get paid for it, this model flips the traditional approach, putting users in charge,” McCourt explained. The new business model would significantly reduce TikTok’s dependence on ad revenue, a vital shift as global regulators scrutinize data privacy issues.
However, McCourt’s bid faces multiple challenges. TikTok’s parent company, ByteDance, has repeatedly stated that it cannot separate itself from the app’s algorithm, which plays a key role in curating user content. The Chinese government added these algorithms to its export-control list in 2020, complicating efforts to divest them without navigating stringent licensing procedures. McCourt, though, aims to exclude the algorithm from his acquisition offer to avoid adding further complications with ByteDance, which could slow down the sale process.
TikTok is awaiting a Supreme Court ruling that could determine its fate. A decision is expected by January 19, when a U.S. law signed by President Joe Biden mandates a potential sale or ban of TikTok in the country. McCourt is confident the Supreme Court will uphold the law, opening the door for further negotiations. “Once that decision is made, ByteDance could be ready to entertain talks,” he added.
In preparation for a potential acquisition, McCourt and his team have already started reaching out to potential CEO candidates for the newly envisioned TikTok. Sources close to the matter suggest that former TikTok Chief Operating Officer, Vanessa Pappas, has been approached for the role, though she has yet to respond to the inquiry. McCourt, however, declined to disclose any further details regarding the candidates under consideration.
McCourt’s vision for TikTok also includes migrating the platform’s technology to an open-source protocol developed by Project Liberty, a non-profit organization he founded. The protocol aims to give users greater control over their personal data and ensure it can be transferred seamlessly across the internet. This transition is expected to influence the search for the right CEO, as McCourt seeks someone who aligns with his commitment to a more user-centric, decentralized internet.
“This isn’t just about scaling technology; it’s about creating a better, more equitable internet,” McCourt said, underscoring the importance of finding leadership that shares this ambitious vision.
For more information on McCourt’s Project Liberty, visit their official website Project Liberty.
Stay updated with the latest news on TikTok’s potential sale and its future developments.
