- Ohanian joins McCourt’s $20B ‘People’s Bid’ to acquire TikTok US operations
- Proposed blockchain migration aims to decentralize user data control
- Competing offers exceed $30B from AI firms and tech investors
- Bipartisan law mandates ByteDance divestment by early April
Reddit co-founder Alexis Ohanian has emerged as a key player in the high-stakes battle for TikTok’s US operations. Partnering with billionaire Frank McCourt’s Project Liberty, the tech visionary aims to rebuild the platform on blockchain infrastructure – a move proponents claim could revolutionize social media governance. This bid arrives as multiple investor groups scramble to meet congressional deadlines requiring ByteDance to divest its American assets.
The proposed ‘TikTok Freedom Edition’ would utilize Project Liberty’s Decentralized Social Networking Protocol (DSNP), enabling users to retain ownership of their content and engagement data. Unlike traditional platforms that monetize user information, this blockchain framework would allow creators to license content directly through smart contracts. McCourt’s consortium claims this architecture could reduce data breaches by 47% based on European blockchain adoption case studies.
Financial analysts note significant valuation gaps in current offers. While McCourt’s group bid $20 billion in cash, competitor Jesse Tinsley recently proposed a $30 billion package involving Roblox’s infrastructure. However, neither bid includes TikTok’s core algorithm – a system some experts value at $15 billion alone. This exclusion mirrors Japan’s 2023 social media acquisition model, where regulators required local control of user data architecture.
The political landscape further complicates negotiations. Despite initial resistance, former President Trump now supports Microsoft’s renewed interest in TikTok, while the Biden administration monitors potential national security implications. This regulatory pressure has spawned unconventional proposals, including Perplexity AI’s offer to grant the US government a 15% stake in a merged TikTok-AI entity.
Industry observers identify three critical trends reshaping acquisition strategies: 1) Growing demand for blockchain-based content moderation tools 2) Increased government oversight of recommendation algorithms 3) Shift toward creator-owned social ecosystems. These developments mirror the EU’s Digital Services Act framework, particularly its emphasis on transparent content governance.
As the April deadline approaches, TikTok’s 170 million US users face uncertainty. While McCourt’s team promises ‘zero service interruption’ during migration, technical analysts warn that blockchain integration could initially slow video processing speeds by 20-35%. The final deal terms will likely influence global tech policy, potentially setting precedents for data sovereignty conflicts between economic superpowers.