Billionaire McCourt says open to teaming up on a TikTok bid
24 Jan 2025, 08:10 am
main news image

DAVOS (Jan 24): US businessman Frank McCourt is open to teaming up with other buyers on a bid to take over the US operations of TikTok as long as he can maintain control of the asset, he told Reuters at the Davos event on Thursday.

The billionaire declined to share details on his sources of financing, but said private equity firms and family offices have reached out to provide options.

"Capital is not the issue here. The issue here is waiting for (TikTok parent) ByteDance, or the Chinese government to make a decision about the future of US TikTok," said McCourt, who spoke on the sidelines of the World Economic Forum in Davos, Switzerland.

The flexibility in his much-publicised bid came shortly after US President Donald Trump signed an executive order on Monday delaying the enforcement of a ban on the Chinese-owned popular short-video app by 75 days.

Trump also said this week he "would like the United States to have a 50% ownership position in a joint venture" in TikTok, and that he was open to billionaires Elon Musk or Larry Ellison, chairman of Oracle, buying the social media app.

McCourt's Project Liberty advocacy group submitted a bid to buy the US assets of TikTok in early January with plans to run the app on the group's technology which aims to let users choose how their data will be used and shared. TikTok has sued to block the US ban but the Supreme Court upheld it in a decision last week.

Existing investors in TikTok have shown support by expressing interest to roll over partial or all stakes in a deal, according to McCourt, which potentially reduces the capital needed to pull off the purchase that could cost US$20 billion (RM88.8 billion) without the inclusion of TikTok's algorithm.

In a meeting with the US House of Representatives' select committee on China earlier this week, McCourt and his co-bidder Kevin O'Leary received assurances that lawmakers on both sides of the US political aisle are committed to ensuring a qualified divestiture.

"I came away with a very clear impression that the (US) Congress was quite unified on enforcing the legislation and causing either a ban or sale of US TikTok," said McCourt.

To McCourt, who said he has never used TikTok, the most appealing assets of the app are the users, data and the brand. His bid for TikTok does not include buying the algorithm for TikTok's recommendation system, which is at the heart of the app's popularity.

He wants to move TikTok's 170 million US users to his own Project Liberty platform with digital infrastructure in the US, and expects that the migration could be completed within a year if a deal happens.

McCourt said he was flexible on financial arrangements of ownership as long as he can maintain control and move TikTok users to digital infrastructure developed by Project Liberty.

"This is not just about who will pay the most money," he said. "This is about who can meet the very strict criteria laid out in the legislation and reaffirmed by the Supreme Court."

Uploaded by Magessan Varatharaja

Print
Text Size
Share