A tech critic, Frank McCourt, is launching a bid to purchase TikTok, the widely popular Chinese-owned social media app currently under pressure from the US government to sell.
Frank McCourt, the executive chairman of McCourt Global, a major family real estate company, and the founder of the tech initiative Project Liberty, revealed his intentions in an interview with Semafor. He plans to acquire and rebuild TikTok into “a new and better version of the internet where individuals are respected and they own and control their identity and their data.”
“TikTok showcases both the best and worst of the internet,” McCourt stated. “It connects 170 million people, fostering creativity and enjoyment. However, users do not truly benefit from the value created, and their data is exploited and sent to China.”
McCourt has enlisted the investment bank Guggenheim Securities to assist with what he calls the “people’s bid.” He aims to raise the estimated $100 billion needed from foundations, endowments, pension funds, and public support.
“We want all the capital to be values-aligned, focused on creating a new and better internet where individuals are respected and control their identity and data,” McCourt emphasized.
Despite his plans, McCourt is likely to face stiff competition from large American companies eager to tap into TikTok’s vast advertising revenue and user base. In 2020, Donald Trump’s administration attempted to force a sale, attracting interest from Microsoft, Oracle, and Walmart. This time, former Treasury Secretary Steven Mnuchin has also shown interest in acquiring TikTok.
The Background on the Sale of TikTok
ByteDance, TikTok’s Chinese parent company, is currently challenging new legislation that would force it to either sell the app or face a shutdown. A key issue in any potential sale is whether TikTok’s algorithm, crucial to its personalized video recommendations, would be included. Without the algorithm, TikTok’s value to buyers could significantly decrease.
Estimates of TikTok’s current value hover around $100 billion, with reported revenues of approximately $16 billion in 2023.
McCourt’s proposal involves integrating TikTok into a technical framework developed by Project Liberty. Users’ accounts would transition to software compatible with the Decentralized Social Networking Protocol, enhancing control over digital identities and personal data. Creators would manage their own content and have monetization options outside the platform. Users, or “people” as McCourt prefers, would gain explicit control over video content and data sharing.
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