Title: Shark Tank's Kevin O'Leary and Billionaire Frank McCourt Eyeing a Purchase of TikTok, but Dealing with a Major Hurdle
A group named "The People's Bid for TikTok," backed by investor Kevin O'Leary and others, announced they've submitted a proposal to acquire TikTok's U.S. assets on Thursday. The worth of the offer remains undisclosed. This move comes just before the Supreme Court is scheduled to hear arguments over whether to maintain a law that could ban TikTok in the U.S. starting January 19, if it's not sold. However, this acquisition proposal might encounter a substantial hurdle due to ByteDance repeatedly stating that TikTok isn't for sale.
In case TikTok gets banned, the impact on creators and fans would be significant. Users might be questioning how the app would vanish from their phones overnight. The Electronic Frontier Foundation's director of cybersecurity, Eva Galperin, shed light on what the ban would mean for users in practical terms. Influencers Eli Rallo and Joanne Molinaro, known as The Korean Vegan, shared their perspectives on how the ban would impact people earning a living through the app.
Since Biden signed a law with the potential to ban the app in April, ByteDance rejected speculations that it was considering a sale. In a Supreme Court filing, the company stated that the law would infringe on the first amendment rights of the platform and its users, with the ban set to begin on January 19, 2025, affecting more than 170 million monthly American users.
The People's Bid has gained backing from Guggenheim Securities, tech experts, academics, and even Tim Berners-Lee, the inventor of the world wide web. The group aims to work with President-elect Trump to close the deal, purchasing the U.S. version of TikTok without its algorithm and rebuilding it on American-designed technology. This move seems to respond to the Chinese export control rule demanding a license to sell sensitive technologies. However, China's commerce ministry expressed opposition to a forced sale of TikTok in the past.
The People's Bid asserts that breaking away from the current TikTok algorithm and avoiding a ban would ensure minimal interruption for TikTok users, prioritizing privacy and trust on the platform. McCourt, who formed the group through his organization Project Liberty, said that millions of Americans would continue to enjoy the platform.
But the success of the sale without the algorithm is a matter of debate. The algorithm is a vital element of TikTok's popularity, and its removal might lead to the platform's lesser appeal to users. The group insists that eliminating the misconception that it can't sell without the algorithm is unfounded, as they intend to create an equivalent platform themselves.
However, many users and social media experts are skeptical, questioning whether the sale's success without the algorithm is plausible, given the algorithm's significance in determining what users see on their "For You" feeds. Replicating this technology has been challenging for other tech giants.
In summary, The People's Bid for TikTok faces numerous challenges in acquiring the app's U.S. assets due to legal obstacles, ByteDance's insistence on not selling, and the financial and technological feasibility of succeeding without the algorithm. Despite its support, the chances of success are slim given the complex negotiation required to address legal, financial, and regulatory requirements.
The tech community has shown interest in the tech business aspect of the TikTok situation, with experts offering insights on the potential success of the app without its popular algorithm. The acquisition proposal by The People's Bid for TikTok could significantly impact the tech business landscape if it manages to acquire and rebuild TikTok on American-designed technology.
