Frank McCourt: Ambitious Plan for TikTok Takeover in the USA

The billionaire entrepreneur Frank McCourt plans a fundamental restructuring of TikTok's business model as part of a planned takeover of the Chinese-owned short video service. With impressive investment commitments totaling $20 billion from an investor consortium, McCourt aims to free the app from its legal quagmire while it awaits a U.S. Supreme Court decision that will seal its fate in the United States. McCourt's vision involves a realignment of the advertising model, giving users more control over the ads and content displayed. In the long term, TikTok could generate revenue through e-commerce and licensing data for artificial intelligence models—with user consent—and thus reduce dependence on advertising revenue. "If your data is used with your permission and you are compensated for it, the power shifts to the users," McCourt emphasized. The plan, however, faces several challenges, particularly TikTok's repeated claims that it cannot be separated from its owner, the Chinese technology company ByteDance. McCourt plans to forgo the algorithm that determines the content in the acquisition to reduce complications for ByteDance, as the Chinese government has considered such algorithms as export-controlled since 2020. The appeal to the Supreme Court is TikTok's last attempt to overturn a law signed by U.S. President Joe Biden that would force the sale of U.S. operations for security reasons. Should the law be upheld, McCourt hopes for negotiations with ByteDance while focusing on a smooth acquisition process. McCourt revealed that his team has already held initial discussions with members of the incoming administration of President-elect Donald Trump. Trump, who attempted to ban TikTok in 2020, has since changed his mind and recently expressed sympathy for the app. The team is also seeking potential candidates for the CEO position of the new TikTok. An insider reported that talks have begun with V. Pappas, the former COO of TikTok. Neither Pappas nor McCourt wanted to comment on this.