Yahoo Finance Real Estate Billionaire Frank McCourt Wants To Buy TikTok To Transform Internet's Influence On Society
Frank McCourt, the real estate tycoon and former owner of the Los Angeles Dodgers, is spearheading a bid to acquire TikTok through his initiative, Project Liberty, with the aim of reshaping the internet’s societal impact.
McCourt’s bid to acquire TikTok comes amid mounting concerns about the influence of major tech platforms on public discourse and individual privacy. Facing a potential U.S. ban unless it secures a non-Chinese owner within the year, McCourt intends to take control of the platform and transition it to an open-source model where users own their data, in stark contrast to the current dominance of major tech corporations.
Don’t Miss:
Miami is expected to take New York's place as the U.S. Financial Capital. Here's how you can invest in the city before that happens.
This Jeff Bezos-backed startup will allow you to become a landlord in just 10 minutes, and you only need $100.
"The foundation of our digital infrastructure is broken, and it's time to fix it. We can, and must, do more to safeguard the health and well-being of our children, families, democracy and society," McCourt stated in a news release issued in May. "We see this potential acquisition as a significant opportunity to catalyze an alternative to the current tech model that has colonized the internet."
To finance the transaction, the billionaire has enlisted Guggenheim Partners, an investment banking and capital markets firm, along with major pension funds, private equity groups, and philanthropic foundations.
According to Project Liberty's vision, the re-architecture of TikTok would involve implementing a decentralized protocol known as the Decentralized Social Networking Protocol (DSNP). This infrastructure aims to dismantle current data control mechanisms and return ownership to the platform's users.
McCourt’s plan envisions TikTok under new governance serving as a flagship for empowering users rather than exploiting them.
Trending: If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it?
"By bringing leading academics, technologists, behavioral scientists, psychologists and economic experts together with community partners, parents and citizens, we believe we can preserve — and enhance — the TikTok experience by giving individuals and creators on the platform the value and control they deserve regarding who has access to their data and how it is used," McCourt emphasized in the news release.
Despite endorsements from figures like Tim Berners-Lee, the creator of the World Wide Web, the path to acquiring TikTok remains uncertain.
ByteDance, TikTok's parent company, has vehemently opposed the forced divestiture mandated by President Biden’s administration, hinting at a potential U.S. shutdown of the platform rather than compliance with government demands.
Moreover, McCourt faces competition in his bid for TikTok. High-profile figures such as former Treasury Secretary Steven Mnuchin, ex-Activision CEO Bobby Kotick, and "Shark Tank" star Kevin O'Leary have also expressed interest.
Nevertheless, McCourt’s commitment of half a billion dollars to Project Liberty underscores his serious intent, despite the acquisition cost of TikTok potentially reaching tens of billions.
To bolster his bid, McCourt announced at the tech-focused Collision conference this week that he plans to unveil new partners in the consortium "every week," according to PCMag, indicating a strategy to garner broader support for his vision.
Keep Reading:
The average millionaire has 7 sources of income. Here are 3 passive income opportunities you can add today.
No generation before Gen Z has had this investment opportunity – How successful Zoomers plan to retire in their 30's.
"ACTIVE INVESTORS' SECRET WEAPON" Supercharge Your Stock Market Game with the #1 "news & everything else" trading tool: Benzinga Pro - Click here to start Your 14-Day Trial Now!
Get the latest stock analysis from Benzinga?
This article Real Estate Billionaire Frank McCourt Wants To Buy TikTok To Transform Internet's Influence On Society originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
