Frank McCourt Enlists Alexis Ohanian to Bolster Bid for TikTok’s US Operations
Frank McCourt, the former owner of the Los Angeles Dodgers, has strategically added Alexis Ohanian, the co-founder of Reddit and a prominent venture capitalist, to his team vying to acquire TikTok’s U.S. operations. Ohanian will serve as a strategic advisor, focusing on leveraging his expertise in social media to strengthen McCourt’s bid, known as "The People’s Bid."
McCourt’s pursuit of TikTok’s U.S. assets comes amidst growing concerns regarding data privacy and national security, which have prompted the U.S. government to consider banning the app if its Chinese parent company, ByteDance, fails to divest its U.S. operations.
Ohanian’s background as an internet pioneer and his deep understanding of the social media landscape make him a valuable asset to McCourt’s team. He co-founded Reddit with his roommate from the University of Virginia, transforming it into a platform for online communities and discussions. After selling Reddit to Conde Nast in 2006, Ohanian returned in 2014 as executive chair, leading a successful turnaround that revitalized the platform.
Beyond Reddit, Ohanian has a proven track record of investing in successful tech companies, including Instacart, Patreon, and OpenSea. His diverse portfolio reflects his ability to identify and support innovative ventures with the potential to disrupt industries.
McCourt believes that Ohanian’s experience will be instrumental in promoting "The People’s Bid," which aims to address concerns about data privacy by running TikTok on technology that empowers users to control how their data is used and shared. McCourt emphasized Ohanian’s comprehensive understanding of social media’s evolution, from its origins to its current state, and his ability to foresee its future trajectory.
"He has that broad portfolio of experience… of where social media was and, I think, a keen understanding of where it’s evolving," McCourt stated.
Ohanian’s role will primarily involve validating and promoting McCourt’s vision for TikTok, particularly to two distinct audiences: technology experts and everyday users. McCourt acknowledged the challenge of conveying the complexities of the underlying technology to both groups.
"On the one hand, this is a project which has very sophisticated technology at the core, and so you’re dealing with a very specific audience when it comes to demonstrating the validity of that technology and in how it works, and why it’s necessary," McCourt explained. "And then you have a totally different constituency, which is basically non-technologists, who are impacted by this technology more than they realize."
Ohanian expressed enthusiasm for the project, emphasizing the importance of empowering users with greater control over their data. He sees "The People’s Bid" as an opportunity to transform TikTok into a platform that prioritizes user privacy and data ownership.
McCourt and his partners submitted their bid for TikTok in early January, as the deadline for ByteDance to sell the app loomed. The app briefly shut down in the U.S. hours before the ban was set to take effect on January 19, but service was restored after President-elect Donald Trump announced that he would revive the app’s access.
Trump subsequently granted a 75-day delay in enforcing the ban and tasked Vice President JD Vance with overseeing the sale process.
The prospect of acquiring one of the world’s most popular video-sharing platforms has attracted a diverse range of potential buyers from the finance, technology, and entertainment sectors. In addition to McCourt’s group, a group of investors led by tech entrepreneur Jesse Tinsley is also vying for TikTok, including YouTube personality MrBeast (Jimmy Donaldson) and Wyoming entrepreneur Reid Rasner.
McCourt has communicated extensively with the White House, providing detailed information about his bid, including financing arrangements, technological approach, and how his proposal addresses national security concerns.
According to McCourt, ByteDance’s engagement in the sale process has been limited. The company has not yet retained a banker, defined a set of assets to be sold, or established a valuation for its U.S. operations. McCourt suggested that ByteDance might choose to shut down TikTok in the U.S. rather than sell it. This potential shutdown would deprive half of the American population of a popular short-video platform.
The future of TikTok in the United States remains uncertain, with the potential for a ban, a sale to a U.S. company, or a shutdown by ByteDance. McCourt’s addition of Ohanian to his team underscores his commitment to acquiring TikTok and transforming it into a platform that prioritizes user privacy and data control.
The acquisition of TikTok would grant the successful bidder access to a massive user base and a dominant position in the short-video market. However, the deal also carries significant regulatory and political risks, as well as the challenge of navigating the complex relationship between TikTok and its Chinese parent company.
