U.S. Businessman Open to Partnerships in TikTok Bid
Davos, Switzerland - U.S. businessman Frank McCourt expressed willingness to collaborate with other investors in acquiring the U.S. operations of TikTok. However, he emphasized the importance of maintaining control of the asset.
McCourt declined to disclose his financing sources but revealed interest from private equity firms and family offices. "Capital is not the issue," he stated, attributing the delay to indecision from ByteDance (TikTok's parent company) and the Chinese government.
The flexibility in McCourt's bid follows an executive order by President Trump delaying TikTok's ban for 75 days. Trump indicated preference for a 50% ownership position for the U.S. in a joint venture, naming Elon Musk and Larry Page as potential buyers.
McCourt's Project Liberty submitted a bid in January, proposing to operate TikTok on their platform, granting users control over data sharing.
TikTok sued to block the ban, but the Supreme Court upheld it. Existing investors have expressed interest in rolling over their stakes, potentially reducing the capital required, estimated at $20 billion excluding TikTok's algorithm.
In a meeting with the House select committee on China, McCourt received assurances of bipartisan support for a qualified divestiture. "Congress is unified in enforcing the legislation," McCourt said.
McCourt values TikTok's users, data, and brand, but not the recommendation algorithm. He aims to migrate U.S. users to Project Liberty's platform within a year, subject to a deal.
McCourt emphasized flexibility in financial arrangements as long as he can maintain control and migrate users to Project Liberty's infrastructure. "It's not about paying the most money," he asserted, "but meeting the criteria set by legislation."