TikTok secures key backer as billionaire Frank McCourt looks beyond app's algorithm

• A group, including billionaire Frank McCourt, is interested in purchasing TikTok to establish a new platform that enables users to manage their data.
• Private investors, pension funds, philanthropies, and parents of children who died due to social media interactions have shown interest in his bid.
• ByteDance, the parent company of TikTok, has consistently stated that it will not sell the app and has taken legal action to prevent a law from forcing it to divest of the popular video app.

Billionaire Frank McCourt is offering investors the opportunity to develop a new platform that enables users to manage their own data in the race to acquire TikTok.

"He stated on Thursday that he does not wish to own TikTok or serve as its CEO. Instead, he desires a new and enhanced internet platform as an alternative to the current one."

McCourt's move coincides with a surge of state-level bills addressing data privacy and child safety online, as well as a bipartisan effort to enact federal legislation.

A significant audience has been attracted to his pitch: Parents whose kids have been affected by social media-related deaths or online bullying.

If Frank constructs the infrastructure and the public discovers a safer and more profitable way to travel, people will begin to arrive. According to Sam Chapman, his son Sammy tragically passed away from a fentanyl overdose after purchasing drugs from the internet.

McCourt's vision would resonate with "tens of thousands of parents" looking for a more secure online environment for their children.

McCourt, a business executive and philanthropist, spent years advocating for a new internet where users own their data. He founded Project Liberty to create a healthier version of social media. Project Liberty is collaborating with Guggenheim Securities and law firm Kirkland & Ellis to purchase the viral video platform.

A diverse group of potential investors, including pension funds, philanthropies, academics, and private investors, have also been approached by McCourt.

ByteDance, the parent company of TikTok, has consistently stated that they will not sell the app and have taken legal action to prevent a new law from forcing them to either find a new buyer by early next year or be banned in the U.S.

McCourt stated that he believes if the courts rule against ByteDance, the company will sell. He added that since his group's primary focus is on TikTok's community rather than its powerful algorithm, they are a "non-threatening buyer."

"McCourt stated, "Our prediction is that they will sell because there is a significant amount of American capital invested. Will they simply erase all of that investment?""

Another investor group, led by former Treasury Secretary Steven Mnuchin, is considering buying TikTok.

McCourt mentioned that Mnuchin's private equity company has connections to Saudi Arabia's funding when questioned about competing bids.

"McCourt stated, "If you replace Chinese money with Saudi money, what problem has been solved?" He emphasized that the exploitative model of scraping and aggregating data to make money and harm children remains the same."