TikTok’s algorithm has been infamously known as “addictive,” with research discovering that it’s “extremely partaking and emotionally rewarding in nature,” which has led to compulsive (and lucrative) consumer numbers. It is also why the algorithm is a fundamental level within the ongoing saga of the app probably being banned within the U.S. if it is not offered quickly.
However billionaire Frank McCourt Jr., 71, tells Entrepreneur in a brand new interview that he and his enterprise companions are “fully prepared to purchase TikTok” — and so they “do not want or need the algorithm.”
The previous L.A. Dodgers proprietor and investor, who’s worth $2.4 billion, mentioned that China has “made it very clear” they are not promoting it.
“So we’re in a superb place if there’s a transaction,” McCourt mentioned.
Associated: Emma Grede Dropped Out of School at 16. Now the Skims Boss Runs a $4 Billion Empire — Here’s How.
After final yr’s regulation passed requiring TikTok to separate from its Beijing-based guardian firm, ByteDance, or face a everlasting ban within the U.S., the potential to personal TikTok has attracted a slew of curiosity from notable individuals and firms. (After multiple extensions, the brand new deadline is June 19.)
McCourt announced his $20 billion provide for TikTok in Could 2024, calling it The Individuals’s Bid for TikTok. He made the bid by means of Project Liberty, the $500 million initiative he based in 2021 that focuses on creating a greater Web by giving customers management over how they share their knowledge. Over time, different public figures joined his bid, probably the most notable being Shark Tank investor Kevin O’Leary in January and Reddit co-founder Alexis Ohanian in March. However up to now, there have not been any updates.
“We’re on standby,” McCourt mentioned.
Different bidders for TikTok embody AI startup Perplexity, Oracle co-founder Larry Ellison, cellular promoting firm AppLovin, and Amazon. McCourt mentioned O’Leary known as him after speaking to all of the potential bidders and figuring out that The Individuals’s Bid was forward of the remaining. Ohanian related with McCourt by means of a mutual buddy, and in addition ended up publicly backing the bid’s mission.
Frank McCourt Jr.
Why Frank McCourt’s Bid for TikTok Is Completely different
McCourt is working in the direction of creating a brand new Web, and TikTok is a stepping stone to get there.
McCourt’s bid is concentrated on the social media app’s 170 million users. He desires emigrate these thousands and thousands of individuals and their knowledge over to an open-source platform that each preserves TikTok’s consumer expertise whereas additionally utilizing an American-built tech stack.
The idea of this platform is named the Decentralized Social Networking Protocol (DSNP), which Mission Liberty developed and first made public in 2021. DSNP shops particular person knowledge in a profile {that a} consumer can transport throughout a community of social apps. Customers on the platform can take their connections and content material, their private knowledge, from one DSNP app to a different and dictate the phrases of its use.
“We’re advocating for a brand new, higher, superior Web the place people personal and management their identification and their knowledge,” McCourt mentioned. “We’re in cost, and our social data is ours to share with others as we see match.”
Proper now, the one social media app that makes use of DSNP is MeWe, which has greater than 20 million customers globally and commenced offering members the choice to sign up with DSNP in September 2022. Now, McCourt desires to convey the protocol to TikTok’s 170 million customers as effectively.
“We have to scale DSNP for it to be a real various, and that is what TikTok would do,” McCourt mentioned.
McCourt outlined a future the place social apps shall be interoperable, and customers will have the ability to faucet into their community regardless of which social app they’re logged into. So, somebody on MeWe may speak to somebody on TikTok, or share a hyperlink with them with out logging into an account only for that one particular app.
Associated: 3 Simple Steps to Start Making Money on TikTok
McCourt in contrast the scenario to how telephone numbers are actually interoperable. An individual utilizing AT&T can name somebody on Verizon with out worrying about whether or not their name will undergo.
“Think about an Web the place that is the case, the place you may be on one app and I might be on one other, and we’ll have the ability to share data,” McCourt mentioned.
McCourt famous that gathering $20 billion for the bid was “fairly straightforward” as a result of “individuals noticed the worth” of the provide. And if The Individuals’s Bid does not find yourself being chosen, McCourt is not ruling out growing a competing social media app.
“We might,” he mentioned. “Sooner or later, we simply want to maneuver ahead.”
TikTok’s algorithm has been infamously known as “addictive,” with research discovering that it’s “extremely partaking and emotionally rewarding in nature,” which has led to compulsive (and lucrative) consumer numbers. It is also why the algorithm is a fundamental level within the ongoing saga of the app probably being banned within the U.S. if it is not offered quickly.
However billionaire Frank McCourt Jr., 71, tells Entrepreneur in a brand new interview that he and his enterprise companions are “fully prepared to purchase TikTok” — and so they “do not want or need the algorithm.”
The previous L.A. Dodgers proprietor and investor, who’s worth $2.4 billion, mentioned that China has “made it very clear” they are not promoting it.
The remainder of this text is locked.
Be a part of Entrepreneur+ at present for entry.
