Billionaire McCourt says he is open to teaming up | Stock News

By Krystal Hu

DAVOS, Switzerland (Reuters) – U.S. businessman Frank McCourt is open to teaming up with different patrons on a bid to take over the U.S. operations of TikTok as long as he can keep control of the asset, he instructed Reuters on the Davos occasion on Thursday.

The billionaire declined to share particulars on his sources of financing, however stated non-public equity companies and household places of work have reached out to offer choices.

“Capital is not the issue here. The issue here is waiting for (TikTok parent) ByteDance, or the Chinese government to make a decision about the future of U.S. TikTok,” stated McCourt, who spoke on the sidelines of the World Financial Discussion board in Davos, Switzerland.

The pliability in his much-publicized bid got here shortly after U.S. President Donald Trump signed an govt order on Monday delaying the enforcement of a ban on the Chinese language-owned standard short-video app by 75 days.

Trump additionally stated this week he “would like the United States to have a 50% ownership position in a joint venture” in TikTok, and that he was open to billionaires Elon Musk or Larry Web page shopping for the social media app. 

McCourt’s Venture Liberty advocacy group submitted a bid to buy the U.S. belongings of TikTok in early January with plans to run the app on the group’s technology which goals to let customers select how their knowledge shall be used and shared. TikTok has sued to dam the U.S. ban however the Supreme Courtroom upheld it in a choice final week.

Present traders in TikTok have proven assist by expressing curiosity to roll over partial or all stakes in a deal, based on McCourt, which doubtlessly reduces the capital needed to drag off the acquisition that might price $20 billion with out the inclusion of TikTok’s algorithm. 

In a assembly with the U.S. Home of Representatives’ choose committee on China earlier this week, McCourt and his co-bidder Kevin O’Leary obtained assurances that lawmakers on each side of the U.S. political aisle are dedicated to making sure a certified divestiture. 

“I came away with a very clear impression that the (U.S.) Congress was quite unified on enforcing the legislation and causing either a ban or sale of U.S. TikTok,” stated McCourt.

To McCourt, who stated he has by no means used TikTok, probably the most interesting belongings of the app are the customers, knowledge and the model. His bid for TikTok doesn’t embody shopping for the algorithm for TikTok’s suggestion system, which is on the coronary heart of the app’s reputation.

He desires to maneuver TikTok’s 170 million U.S. customers to his own Venture Liberty platform with digital infrastructure within the U.S., and expects that the migration could possibly be accomplished within a 12 months if a deal occurs.

McCourt stated he was versatile on financial preparations of possession as long as he can keep control and transfer TikTok customers to digital infrastructure developed by Venture Liberty.

“This is not just about who will pay the most money,” he stated. “This is about who can meet the very strict criteria laid out in the legislation and reaffirmed by the Supreme Court.”