Frank McCourt open to joint bid for TikTok’s US operations

• Published On: 25 January 2025 at 07:31

Frank McCourt, a US businessman, has expressed a willingness to collaborate with other buyers on a bid for TikTok's US operations, as long as he retains control of the asset.

Speaking at the World Economic Forum in Davos on Thursday, McCourt emphasized that capital was not a barrier, citing interest from private equity firms and family offices eager to fund the transaction.

"The issue here is waiting for ByteDance, or the Chinese government, to make a decision about the future of U.S. TikTok," McCourt told Reuters in an interview.

His comments come amid increased scrutiny of TikTok's ownership, following US President Donald Trump's executive order earlier this week that delayed the implementation of a ban on the platform for 75 days.

Trump has also suggested that the US government take a 50% stake in any TikTok-related joint venture, naming billionaires Elon Musk and Larry Ellison as potential buyers.

McCourt's advocacy group, Project Liberty, made a bid for TikTok's US assets earlier this month. The plan entails migrating TikTok's 170 million US users to Project Liberty technology, which prioritizes user control over data use and sharing.

McCourt intends to move TikTok's U.S. operations to domestic digital infrastructure, which he believes could be completed within a year if his bid is successful.

Notably, McCourt's bid does not include TikTok's recommendation algorithm, which is regarded as the foundation of the app's popularity. Instead, he sees the app's user base, data, and brand as the main assets of interest.

TikTok's US operations have attracted a wide range of potential buyers, including Saudi Prince Alwaleed Bin Talal's Kingdom Holding and a consortium led by online personality Jimmy Donaldson, also known as MrBeast. Former Treasury Secretary Steven Mnuchin has also reportedly put together a group of investors to pursue the deal.

McCourt, who met with the US House Select Committee on China earlier this week, stated that lawmakers on both sides of the aisle are committed to ensuring compliance with legislation that could require the sale or ban of TikTok's US operations. "I came away with a very clear impression that Congress is unified on enforcing this legislation," McCourt told me.

Despite strong interest, questions remain about the scope of the assets for sale and the financing required. The deal could cost around $20 billion, excluding TikTok's algorithm. Existing TikTok investors have reportedly expressed interest in rolling over their stakes, potentially lowering the initial investment required.

McCourt emphasized that his bid is about more than just money; it is also about meeting the stringent criteria established by US legislation. "This is not just about who will pay the most money," he told me. "This is about who can meet the very strict criteria laid out in the legislation and reaffirmed by the Supreme Court."