A consortium of business leaders in the U.S. made an official bid to buy TikTok ahead of a looming federal ban on the popular Chinese-owned video app.
The People’s Bid for TikTok, a group formed by billionaire Frank McCourt in partnership with his non-profit organization, Project Liberty, said Thursday it delivered a proposal to ByteDance to acquire TikTok’s U.S. assets.
The group includes “Shark Tank” star and investor Kevin O’Leary, who announced that he would be joining forces with McCourt earlier this week.
“I’ve spoken to all the potential bidders, and it’s clear to me that Frank McCourt and Project Liberty are the team to get this done,” O’Leary said in a statement Thursday. “This is the bid that can save TikTok. Project Liberty has brought together the right people, the right vision and the right technology to avoid a ban. It is a win for all Americans.”
Last April, President Joe Biden signed a law calling for ByteDance — a Chinese firm — to sell TikTok to an American company or be met with a ban in the United States by Jan. 19.
Project Liberty plans to migrate TikTok’s existing U.S. base of about 170 million monthly users to an American-built tech stack, a move the group says will help minimize interruptions for users and put data privacy at the fore.
“By keeping the platform alive without relying on the current TikTok algorithm and avoiding a ban, millions of Americans can continue to enjoy the platform,” said McCourt in a statement.
The incoming Trump administration could put the brakes on McCourt’s plans — at least temporarily. Last month, President-elect Donald Trump asked the Supreme Court to pause the incoming ban, which is set to take effect the day before he takes office.
“President Trump opposes banning TikTok in the United States at this juncture, and seeks the ability to resolve the issues at hand through political means once he takes office,” Trump’s solicitor general nominee, John Sauer, said in an amicus brief filed last week.
This was a reversal from Trump’s stance on TikTok during his first term in the White House. Trump signed an executive order in August 2020 calling for a national ban on the app, citing national security concerns.
Last month, the U.S. Court of Appeals for the District of Columbia Circuit upheld the potential ban.
The court will begin hearing challenges to the case starting Friday, giving it a little over a week to make a decision. TikTok has repeatedly challenged the law, arguing that it violates First Amendment free speech rights.
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