On January 19, a ban on short-form video platform TikTok in the United States will go into effect unless its owner, Chinese company ByteDance, agrees to sell the service to an American company by that date. Without waiting for that deadline, businessman Frank McCourt’s Project Liberty group announced on Thursday that it had sent an offer to buy the service to its owner, CNBC reports. According to McCourt, “We have put forward an offer to ByteDance to realize Project Liberty’s vision of reimagining TikTok — one built on an American tech stack that puts people first.”
McCourt emphasized that under Project Liberty’s ownership, the platform will no longer rely on its current algorithm. Instead, it will prioritize the digital safety of its users, and millions of Americans will be able to continue using the platform. A Project Liberty spokesperson said the group is not disclosing the financial terms of the offer and confirmed that ByteDance had received it.
“We’ll keep you updated,” the group noted, indicating that any further developments in the negotiation process will be communicated as they unfold. This point aligns with McCourt’s previously stated objective to develop a “healthier and fairer internet.”
Project Liberty’s Offer and Vision
Billionaire real estate investor Frank McCourt is the founder of Project Liberty, an initiative aimed at creating a fairer digital environment. Last May, he announced plans to buy TikTok to “create an alternative to the current tech model that has colonized the internet.” According to his vision, TikTok would be moved to an open-source platform, giving users more control over their data and transparency in how the platform’s algorithms function.
Project Liberty is partnering with investment banking group Guggenheim Securities and law firm Kirkland & Ellis. It is also backed by digital security advocates, investor Kevin O’Leary, and World Wide Web creator Tim Berners-Lee. Their combined expertise is expected to bolster the group’s offer and highlight its commitment to safeguarding user privacy.
Regulatory Challenges and Legal Background
The US “Protect Americans from Apps Controlled by Unfriendly Foreign Countries Act,” passed last year, requires TikTok to split from its parent company ByteDance or face a ban. TikTok appealed the law to the U.S. Court of Appeals for the District of Columbia Circuit, which ruled in favor of the defendant after reviewing the government’s arguments for a ban based on national security concerns.
It was previously reported that ByteDance would rather shut down the service in the U.S. than sell it to anyone. However, Project Liberty’s recent offer indicates there may still be room for negotiations, adds NIXSolutions. Observers note that if ByteDance is unwilling to divest, the impending ban could drastically reshape TikTok’s presence in the U.S. market.
With the January 19 deadline approaching, the fate of TikTok in the U.S. remains uncertain. Nevertheless, discussions around Project Liberty’s proposal may provide an alternative path forward. We’ll keep you updated on whether ByteDance decides to sell or if other legal challenges arise before the ban officially goes into effect.