Recently, Donald Trump, President of the United States, said that Microsoft is one of the companies that will bid to acquire TikTok in the US. However, he also stated that he expected a bidding war for the short video platform. In line with that, an investment group led by MrBeast plans to make an offer of more than $20 billion to buy TikTok.
YouTuber Jimmy Donaldson, better known as MrBeast, confirmed a few days ago that he will enter the bidding to acquire TikTok in the United States. However, MrBeast is not alone, as he has teamed up with other major investors. According to Bloomberg, the group has in its ranks David Baszucki, co-founder and CEO of Roblox, and Nathan McCauley, co-founder and CEO of Anchorage Digital.
Investment group led by MrBeast plans to offer more than $20 billion to buy TikTok in the US
Jesse Tinsley, founder of Employer.com, revealed that the group led by the YouTuber has already raised more than $20 billion to make a competitive offer. Tinsley says the group plans to make a “significantly higher” bid than one already submitted to ByteDance. Though he did not reveal the name of the bidder he referred to, presumably he is talking about Project Liberty. The latter is a joint initiative led by Frank McCourt, former Los Angeles Dodgers owner, and Kevin O’Leary, Canadian “Shark Tank” star. Project Liberty seeks to keep TikTok in the US but gradually make it less addictive.
There are several big tech companies and investors interested in acquiring TikTok. The popularity of the app and the data from around 170 million US users are key in the AI era. However, ByteDance has not yet publicly commented on the offers. After extending the TikTok ban for 75 days, Donald Trump suggested the sale of 50% of the US stake in the service. This could solve the problem while allowing ByteDance to maintain a stake in the company. US officials would also have more peace of mind by ensuring that Americans’ data is not leaking to China.
Others interested in buying the app
Dan Ives, an analyst at Wedbush, estimated that TikTok could sell for between $40 billion and $50 billion. Offers so far are around half that, which is in line with Trump’s proposal. Other parties interested in purchasing the platform include Perplexity, Oracle, and Saudi Prince Alwaleed Bin Talal’s investment firm. Elon Musk, whose involvement in negotiations had been denied by ByteDance itself, could also step forward at the end.
A member of the TikTok board suggested a potential way to keep TikTok in the US without a sale. However, this does not seem to be in line with US officials’ intentions.
