Billionaire businessman Frank McCourt has announced his plans to organize a consortium to purchase TikTok’s U.S. business, joining a growing number of investors seeking to take advantage of a new federal law requiring the sale of TikTok or facing a ban. McCourt, along with investment bank Guggenheim Securities, aims to restructure TikTok by prioritizing people and data empowerment, with a focus on transparency and data privacy protections. McCourt’s interest in remaking the internet aligns with his Project Liberty initiative, which aims to build a safer and healthier digital environment.
Despite not using TikTok himself, McCourt views the platform as an opportunity to create an alternative internet that prioritizes user autonomy and data privacy. Social psychologist Jonathan Haidt, known for his work on smartphone and social media effects on mental health, has expressed his support for McCourt’s vision to overhaul TikTok. While other investors, such as former Treasury Secretary Steven Mnuchin, have shown interest in acquiring TikTok, parent company ByteDance has maintained its stance against selling the platform, especially due to Chinese government regulations that may prevent a sale involving vital components of TikTok’s recommendation engine.
McCourt’s disinterest in TikTok’s current algorithm stems from his belief in bottom-up governance for social media platforms, contrasting with ByteDance’s more centralized approach. Despite legal challenges from ByteDance and TikTok to block the new federal law and other state-level prohibitions, McCourt remains optimistic that TikTok’s U.S. business will eventually be sold. Montana’s law, which would nullify with a sale to a non-foreign adversary based company, has faced legal battles alongside federal challenges from TikTok creators asserting First Amendment violations. McCourt’s financial standing, with a reported net worth of $1.4 billion, provides him with the resources to potentially acquire TikTok’s U.S. business.
With his previous successes in sports ownership, such as selling the Los Angeles Dodgers and acquiring the French soccer club Marseille, McCourt’s foray into tech investment marks a new chapter in his entrepreneurial pursuits. As TikTok continues to navigate regulatory challenges and potential sale negotiations, McCourt’s consortium represents a unique proposition centered on empowering users and prioritizing data privacy. Despite the uncertain outcome of TikTok’s future, McCourt’s involvement signals a growing trend of influential figures seeking to reshape the digital landscape for the better.
