Frank McCourt, the billionaire who wants to buy TikTok, says the path to a sale is murky because ‘we don’t know what ByteDance is selling’

Just because they’re not talking about the specifics of a deal “doesn’t mean they won’t eventually come to that,” McCourt said.

And when ByteDance is ready to talk, so is he, he said.

McCourt’s TikTok purchase project, which he calls “The People’s Bid” has secured the backing of Guggenheim Securities, an investment banking firm, and Kirkland & Ellis, one of the world’s largest law firms.

Rather than recreate the app’s algorithm and continue business as it currently operates, McCourt hopes to acquire and use TikTok as a large-scale example of a decentralized social media app that allows users more control over their personal data.

“Imagine you’re signing on to the internet. You don’t have 50 passwords. You’re not the IP address of a device anymore — you’re actually a person on the internet, and you have the IP address, so when you sign on the internet, you have access to all the apps that are built on the same core-level protocol,” McCourt said. “Now imagine all your data is yours, and you permission its use, so the apps that are built in this new world are clicking on your terms and conditions of use for your data.”

The momentum behind decentralized social media — and the internet more broadly — has, in recent years, been gaining steam. Jack Dorsey, the founder of Twitter, says he is partially to blame for helping to “centralize” the internet and that he regrets it. He’s since shifted his focus to building decentralized tech solutions.

Others, such as Chelsea Manning, the former Army intelligence analyst sentenced to 35 years in prison over her 2010 leak of classified government information, publicly promote decentralized security solutions to enhance user privacy amid concerns about cyber surveillance.

While some users are increasingly interested in decentralized social media, it is difficult for new sites to break through the centralized landscape and siphon off enough users from giants like Meta and Elon Musk’s X to get to scale.

Smaller platforms often fail to achieve the positive feedback loop known as the network effect, which entices new users to join based on the positive experience of the existing user base.

If McCourt is able to acquire TikTok, the platform’s existing 170 million users would come with the brand — and he’s not worried that ByteDance has reportedly shut down any talks of selling the app’s signature algorithm, declaring it integral to its internal operations; he wouldn’t want to buy it if it did.

“There’d probably be more buyers if the algorithm was available, or at least more buyers kicking the tires,” McCourt said. “But we don’t want the algorithm. If someone offered TikTok to me with the algorithm, I wouldn’t take it because I’m against the architecture, the design that preys on people and takes advantage of people. I think it’s incongruent with our democratic principles.”

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