Dec 20 (Reuters) – Billionaire businessman Frank McCourt, the former owner of the Los Angeles Dodgers, is proposing a radical transformation of TikTok’s business model as part of a $20 billion bid to acquire the app.

McCourt revealed plans to shift TikTok’s reliance on advertising to a user-centric model. Users would control the ads and content they see, earn compensation for consenting to data use, and enable TikTok to diversify its revenue through e-commerce and licensing data for AI models.

“When you give permission for your data to be used and you receive compensation, it flips the model 180 degrees, giving the user the power,” McCourt said.

Challenges Ahead

The bid faces significant hurdles, including TikTok’s ongoing legal battle with the U.S. government. The app awaits a Supreme Court ruling on whether ByteDance, its Chinese parent company, must divest TikTok’s U.S. operations under a law signed by President Joe Biden. If the law is upheld, TikTok faces a January 19 ban unless a sale is finalized.

McCourt’s proposal excludes TikTok’s proprietary algorithm to simplify negotiations with ByteDance and navigate China’s export-control regulations. ByteDance has resisted divestment, asserting that TikTok cannot be separated from its ownership structure.

Discussions and Strategic Moves

McCourt’s team is holding preliminary discussions with members of President-elect Donald Trump’s incoming administration. Trump, who attempted to ban TikTok in 2020, has recently softened his stance, expressing a “warm spot” for the app.

The team is also in talks with potential CEO candidates for the revamped TikTok, including former COO V. Pappas, though McCourt declined to confirm specifics.

A key element of McCourt’s vision involves migrating TikTok’s technology to an open-source protocol developed by Project Liberty, his organization. This protocol aims to give users control over their data and allow seamless data transfer across the internet, aligning with McCourt’s broader vision of a “better internet.”

Outlook

If successful, McCourt’s plan could reshape TikTok’s role in the digital economy and redefine how user data is leveraged in tech businesses. However, the acquisition and subsequent overhaul depend on legal, political, and technical challenges, as well as the willingness of ByteDance to negotiate after the Supreme Court’s decision.

The outcome of this bid could set a precedent for how tech companies address privacy, data ownership, and geopolitical concerns in the digital age.