Renowned for its highly addictive qualities, TikTok’s algorithm has often been described as “compelling and emotionally engaging,” leading to a surge in user engagement and revenue. This intense user retention is a key factor fueling ongoing debates about the platform’s potential ban in the United States, especially as discussions about regulating or restricting TikTok continue to dominate tech and political conversations. The concern centers around its Chinese parent company, ByteDance, and whether the app’s influence warrants governmental intervention.
However, in a recent interview with Entrepreneur, billionaire investor Frank McCourt Jr., aged 71, expressed a different perspective. He revealed that he and his investment partners are prepared to acquire TikTok outright-without any reliance on its proprietary algorithm. McCourt, who previously owned the Los Angeles Dodgers and is valued at approximately $2.4 billion, emphasized that China has made it clear they are not interested in selling the platform, but he remains optimistic about future opportunities.
“If a deal were to happen, we are in a strong position,” McCourt stated. “But currently, China has indicated they have no intention of parting with TikTok.”
Legislative Pressure and the Push for Change
Last year, new legislation was enacted requiring TikTok to divest from ByteDance or face a permanent ban in the U.S. This move has intensified interest from prominent entrepreneurs and corporations eager to take control of the platform. After multiple extensions, the deadline for compliance is set for June 19, 2023, heightening the urgency of the situation.
In response, McCourt announced a $20 billion bid for TikTok in May 2023, under the banner “The People’s Offer for TikTok.” This initiative is part of Project Liberty, a $500 million project launched in 2021 aimed at creating a more open and user-controlled internet. The project advocates for decentralizing data ownership and empowering users to manage their personal information across social platforms.
Several notable figures have joined McCourt’s effort, including Kevin O’Leary from Shark Tank and Reddit co-founder Alexis Ohanian, who publicly endorsed the initiative. Despite the interest, there have been no concrete updates on negotiations so far.
“We are currently on standby,” McCourt explained, signaling that negotiations or further developments are pending.”
Competing Bidders and Strategic Vision
Other contenders for acquiring TikTok include AI startup Perplexity, Oracle co-founder Larry Ellison, mobile marketing firm AppLovin, and tech giant Amazon. McCourt shared that O’Leary reached out after assessing the various bids and recognized the strength of The People’s Offer, while Ohanian connected through mutual contacts and has publicly supported the initiative.
Innovating the Future of Social Media
McCourt’s vision extends beyond simply acquiring TikTok; he aims to pioneer a new era of the internet centered on user sovereignty and data ownership. His proposal involves transitioning TikTok’s vast user base-over 170 million in the U.S. alone-to a decentralized social networking platform built on the Decentralized Social Networking Protocol (DSNP). Developed by Project Liberty, DSNP allows users to store their personal data in portable profiles that can be seamlessly transferred across different social applications.
“Our goal is to foster a more equitable internet where individuals control their identities and data,” McCourt explained. “Users should decide how and with whom they share their information.”
Currently, MeWe is the only major social media platform utilizing DSNP, boasting over 20 million users globally since its adoption in September 2022. McCourt envisions expanding this protocol to TikTok’s user base, creating a truly interoperable social ecosystem where users can interact across platforms without restrictions.
“Scaling DSNP is essential to making it a viable alternative,” he said. “Imagine a future where social apps are interconnected, and sharing content or connecting with friends is as effortless as making a phone call across different networks.”
The Future of Interoperable Social Networks
McCourt likens this vision to how phone numbers work today-allowing users on different carriers to communicate without barriers. He envisions a digital landscape where social platforms are similarly interconnected, enabling users to maintain their social circles regardless of the app they prefer.
“Envision an internet where you can be on one app, I can be on another, and we can still share information freely,” he elaborated. “That’s the future we’re working toward.”
He also noted that raising $20 billion for his initiative was relatively straightforward because investors recognize the potential value of a decentralized, user-controlled internet. Should The People’s Offer not succeed, McCourt remains open to developing a competing social media platform from scratch, emphasizing that progress must continue regardless.
“We’re prepared to move forward,” he affirmed. “The future of social media depends on innovation and user empowerment.”
