As we approach the deadline for TikTok to be banned in the US, it seems that ByteDance, the Chinese parent company, has shown zero willingness to spin off the popular app. Instead, they are banking on the Supreme Court or President-elect Donald Trump rescuing the app before January 19th.
Waiting in the Wings: Tech Giants and Investors
While many obvious names have been mentioned as potential buyers of TikTok, such as Amazon, Google, Meta, Microsoft, Oracle, and others, they remain on the sidelines, waiting to see what happens next. This includes notable individuals like Frank McCourt, a real estate billionaire and former owner of the Los Angeles Dodgers.
Frank McCourt’s Ambitious Plan: Project Liberty
For months, McCourt has been vocal about his desire to buy TikTok’s US operations. He recently lost his legal fight on appeal, which has only ramped up his efforts. This week, he pitched investors on his plan to buy TikTok’s US operations, known as Project Liberty.
In a conversation with me over Zoom, McCourt revealed that he currently has around $20 billion behind him for the bid. He also mentioned that Kevin Mayer, who was briefly TikTok’s CEO when it was almost banned from the US, is involved in the plan, although Mayer hasn’t signed on yet.
McCourt stated that his team has spoken to most of ByteDance’s biggest American investors and that they are very interested in his plan. However, spokespeople for these firms either declined to comment or didn’t respond to my inquiries, and Mayer had no comment.
The Long-Shot Bid
While McCourt’s attempt to buy TikTok is ambitious, it faces several challenges. The biggest hurdle is that the Chinese government may not let ByteDance sell the app. Additionally, there are technical details of his proposal that raise concerns, including using a decentralized protocol funded by McCourt and untested with a platform of TikTok’s size.
Moreover, there is a cryptocurrency called Frequency tied to the project, which raises red flags for some experts.
McCourt’s Vision: A Federated Internet
In our conversation, McCourt shared his high-minded ambitions for how the internet should work. He envisions TikTok offering a marketplace of user-created algorithms, much like Bluesky does today, and users having the ability to own their profiles.
This vision aligns with the rise of federated platforms like ActivityPub and Bluesky, which prioritize decentralization and user control.
Q&A: Unpacking Project Liberty
Below is an edited version of our conversation for length and clarity. The following questions and answers delve deeper into McCourt’s ambitious plan:
Q: What are the multiple pieces of Project Liberty?
A: There are several components to Project Liberty, but I’ll focus on the main ones. First, we have the acquisition itself, where we would purchase TikTok’s US operations from ByteDance.
Next, we have the decentralized protocol that will be used for the app. This is a key part of our plan and has been designed with scalability in mind. We believe it’s essential to create an open-source platform that allows users to own their data and profiles.
Finally, there are the marketplaces and user-created algorithms that I mentioned earlier. We envision TikTok offering a range of tools for creators to build and monetize their content.
Q: How will you ensure that ByteDance sells TikTok’s US operations?
A: We’ve spoken to most of ByteDance’s biggest American investors, and they’re very interested in our plan. However, it’s essential to note that the Chinese government may not allow them to sell the app.
In this case, we would need to work with regulators to find a solution that allows for the sale of TikTok’s US operations while maintaining compliance with Chinese regulations.
Q: What role will Kevin Mayer play in Project Liberty?
A: Kevin Mayer is an important part of our team. He brings his expertise and knowledge from his time at TikTok, which we believe is invaluable to this project. However, I must emphasize that he hasn’t signed on yet, so it’s too early to confirm his involvement.
Q: How will you address the technical challenges of using a decentralized protocol with a platform like TikTok?
A: We’ve worked extensively on designing a protocol that can handle the scale and complexity of TikTok. While we understand that it’s an untested solution for an app of this size, we believe it has the potential to revolutionize how social media platforms operate.
Q: What about the cryptocurrency Frequency tied to Project Liberty?
A: Frequency is an essential component of our plan, as it provides a secure and decentralized way for users to monetize their data. However, I understand that some experts have raised concerns about its use in this context. We believe that Frequency has tremendous potential and will provide more information on how it fits into our overall vision.
In conclusion, Frank McCourt’s ambitious bid to buy TikTok’s US operations is a long-shot at best. While his plan has some appealing aspects, such as the decentralized protocol and marketplaces, there are significant technical and regulatory hurdles to overcome.