The People’s Bid for TikTok, an initiative led by Project Liberty founder and billionaire investor Frank McCourt, has submitted a proposal to ByteDance, the Chinese parent company of TikTok, to acquire the app’s U.S. assets before a ban on the popular social media platform takes effect on January 19.
January 9, 2025
Frank McCourt, founder of Project Liberty, stated that his nonprofit’s proposal—whose value remains undisclosed—aims to preserve TikTok’s availability in the U.S. while reconstructing it to prioritize Americans’ privacy and eliminate reliance on its current algorithm, which has sparked national security concerns. It is unclear if ByteDance is considering the offer. The proposal involves transitioning TikTok’s U.S. users to a digital infrastructure built in the U.S. and would require support from private equity funds, private investors, and substantial debt financing from a major U.S. bank, according to a statement from the group.
January 6, 2025
Investor and “Shark Tank” star Kevin O’Leary, a member of The People’s Bid for TikTok, told Fox News’ Martha MacCallum he plans to acquire the app and will need support from President-elect Donald Trump to accomplish it.
January 3, 2025
The Justice Department urged the Supreme Court to uphold the law mandating the ban or sale of TikTok, arguing the app has failed to present sufficient justification for delaying the law’s implementation. It also stated that Trump has not provided a credible argument for a postponement.
December 27, 2024
In a court filing, Trump opposed the proposed TikTok ban, asserting that if the Supreme Court intervenes, he could negotiate a “political resolution” after his inauguration on January 20 to keep the app operational in the U.S.
December 18, 2024
The Supreme Court announced it will hear TikTok’s challenge to the federal law that could lead to the app’s ban. Oral arguments are scheduled for January 10, just days before the law is set to take effect.
December 16, 2024
TikTok sought an injunction from the Supreme Court to delay the ban while the Court reviews the case or decides to dismiss it. TikTok argued that a pause would allow time for a thorough review before a critical communication platform for Americans is shut down.
December 16, 2024
TikTok CEO Shou Chew met with Trump at Mar-a-Lago, as reported by CNN. Chew advocated for a Supreme Court injunction, which was ultimately denied, to give the incoming TikTok-friendly administration more time to weigh in on the issue.
December 6, 2024
The U.S. Court of Appeals for the D.C. Circuit rejected TikTok’s petition to review the law banning the app. The court ruled that national security concerns outweigh TikTok’s First Amendment claims and subsequently denied TikTok’s request to pause its decision.
May 14, 2024
A group of eight TikTok users filed a lawsuit against the federal government, alleging the ban violates their First Amendment rights and describing it as “unconstitutionally overbroad.”
May 7, 2024
TikTok filed its own lawsuit against the federal government, challenging the constitutionality of the ban and arguing it infringes on the First Amendment rights of both the app and its American users.
April 24, 2024
President Joe Biden signed legislation requiring TikTok to be sold or banned. TikTok responded by highlighting its significant investments in safeguarding U.S. data and maintaining the platform’s independence from external influence.
April 23, 2024
The Senate passed the bill with an 80-19 vote. Senator Maria Cantwell (D-Wash.) stated the measure was intended to prevent foreign adversaries from engaging in espionage, surveillance, and other harmful activities affecting Americans, service members, and government personnel.
April 20, 2024
The House approved the legislation in a decisive 360-58 vote. Minority Leader Hakeem Jeffries (D-N.Y.) emphasized that the bill addresses legitimate concerns regarding national security and privacy.
When Could The Tiktok Ban Take Effect?
The TikTok ban could take effect as early as January 19 unless ByteDance agrees to sell the platform to another company or the Supreme Court overturns the federal law enforcing the ban. Oral arguments are scheduled for Friday.
What U.s. Company Could End Up Buying Tiktok?
Several companies have expressed interest or have been rumored to consider acquiring TikTok. Project Liberty, leading The People’s Bid for TikTok, has formed a consortium that includes Kevin O’Leary and Guggenheim Securities. The People’s Bid website states it is not seeking to acquire TikTok’s algorithm, which ByteDance has shown no willingness to sell. TikTok did not immediately respond to Forbes’ request for comment on the proposal.
Amazon has been identified as a potential buyer, with experts citing its growing ties to TikTok, including a partnership allowing TikTok users to browse and purchase Amazon products and Amazon becoming the third-largest advertiser on TikTok in the U.S. this year. Oracle and Walmart might also make a joint bid, as they previously attempted to purchase TikTok in 2020, though the effort reportedly stalled due to security concerns raised by the Biden administration.
Microsoft may also revisit its interest in TikTok after attempting to acquire the platform in 2020. However, Microsoft CEO Satya Nadella previously stated he was “happy with what I have” after talks fell through. Video-sharing platform Rumble, which publicly offered to purchase TikTok earlier this year, might reenter discussions, having expressed its readiness to join a consortium to operate TikTok in the U.S.
China, which has vowed to block the sale of TikTok’s algorithm, would need to approve any sale of the app to another company, although such approval is considered unlikely.
Who Is Billionaire Frank Mccourt?
Frank McCourt, whose net worth is estimated at $1.4 billion as of Thursday, is an investor and entrepreneur with a legacy rooted in his family’s Boston-based construction business, established five generations ago. In 2004, he purchased the Los Angeles Dodgers, later selling the team eight years later in what was then the largest sports transaction in history. He has since reinvested the proceeds into ventures spanning real estate, sports, technology, and media.
McCourt has also committed $500 million to Project Liberty, a nonprofit organization dedicated to creating a safer internet where users retain ownership of their data rather than surrendering it to tech giants.
Who Is Billionaire Tiktok Investor Jeff Yass?
Jeff Yass, whose net worth is estimated at $49.6 billion, is a prominent GOP megadonor and a significant investor in TikTok. He reportedly met with Donald Trump and is believed to have been a key influence in Trump’s shift from supporting a ban on the app to opposing its removal. Yass is the co-founder of Susquehanna International Group, a global trading firm that owns approximately 15% of ByteDance. As of March, his stake in TikTok was valued at $33 billion.
Yass has also financially supported conservative lawmakers opposing the TikTok ban, including Sen. Rand Paul (R-Ky.), who received $24 million, and Rep. Thomas Massie (R-Ky.), who received $32,200, according to The Wall Street Journal. He has reportedly threatened to withhold donations from Congress members who back the ban, which could jeopardize his multi-billion-dollar investment in the app.
Additionally, Yass has contributed millions to conservative PACs, including $16 million to Club for Growth Action, $10 million to the Congressional Leadership Fund, and $6 million to the Protect Freedom PAC.
Could Donald Trump Reverse The Tiktok Ban?
Potentially, but his options are limited. The Supreme Court is set to hear arguments in January, meaning Biden’s Justice Department will defend the law in court instead of Trump’s. If the Supreme Court upholds the ban before Biden takes office, the president-elect could instruct his Justice Department not to enforce it. However, even if Trump sought to persuade the Supreme Court to halt the ban, the impact might be minimal. Apple, Google, and Oracle could still remove TikTok from their platforms to avoid financial penalties, especially if Trump later reversed his position.
Former Justice Department official Alan Rozenshtein noted in a Lawfare op-ed that Trump could also push Congress to repeal the ban, but this would require overcoming its bipartisan support. Alternatively, Trump could allow TikTok to be temporarily taken offline and then reintroduce it with a one-time, three-month extension to facilitate its potential sale.
What Happens To American Data If The App Is Shut Down?
If TikTok is banned in the U.S., all American user data could be transferred to China. A precedent for this occurred in 2020 when TikTok operations were shut down in India, leaving the app and ByteDance with access to millions of Indian users’ data even years after the shutdown, according to Forbes.
Big Number:
Approximately 170 million Americans were using TikTok as of April, according to the app.
Key Background
The federal government’s main concerns with TikTok center around national security and data privacy, particularly due to the app’s connections to China. U.S. officials have raised fears that the Chinese Communist Party could exploit the app to spy on Americans or manipulate public discourse. TikTok has denied these claims, with its CEO telling Congress this year that he “disagrees with the characterization” that the platform is engaged in spying and emphasizing TikTok’s commitment to safeguarding Americans’ data.
After President Biden signed the law against TikTok, the app argued that the requirement to sell itself was “illusory” and offered no real alternative. Experts and reports, including those from Forbes, have pointed out the deep ties between ByteDance and TikTok. Former National Security Agency general counsel Glenn Gerstell noted, “There’s no way to take the U.S. piece out of TikTok and sell it to someone.”
ByteDance has sought to address concerns by asserting that 100% of U.S. traffic has been routed through Oracle and U.S. Digital Service infrastructure since 2022. It also highlighted that about 60% of its ownership comes from institutional investors like the Carlyle Group, General Atlantic, and Susquehanna International Group. However, Forbes has reported that ByteDance used TikTok to spy on journalists and mishandled sensitive data, including financial details, Social Security numbers, and personal contacts of creators, advertisers, celebrities, and politicians.
