MrBeast Joins Group of Investors to Bid for TikTok Amid Looming Ban Deadline

Nickelodeon Kids' Choice Awards 2023 held at the Microsoft Theater in Los Angeles, USA on March 4, 2023 with MrBeast arriving.
Photo: Lumeimages / SplashNews.com

YouTube sensation MrBeast, whose real name is Jimmy Donaldson, has joined a group of investors looking to buy TikTok, as the clock ticks down on a 75-day deadline for the platform to be sold to a non-Chinese owner or face potential ban in the United States. While Donaldson’s initial post on X (formerly Twitter) seemed playful, his lawyer confirmed to CNN that the offer is genuine.

“I’ll buy TikTok so it doesn’t get banned,” Donaldson posted on January 13. The statement, while lighthearted in tone, signals a serious bid from Donaldson and his group of investors to save the popular social media app, which has been under scrutiny by U.S. lawmakers due to national security concerns.

A New Twist in TikTok’s Battle for Survival

The bid from MrBeast, the most popular YouTuber and third-most-followed TikTok personality, comes in the wake of escalating tensions surrounding the app’s ownership. TikTok, which has 170 million U.S. users, has been caught in a geopolitical struggle due to its parent company, ByteDance, being based in China. The situation intensified following the U.S. Supreme Court’s recent decision to uphold a federal law requiring ByteDance to sell TikTok to a non-China-based entity.

MrBeast
MrBeast. Photo: Frank Micelotta/Picturegroup / Shutterstock

Over the weekend, TikTok briefly went offline in the U.S. after a federal ban appeared imminent. The app displayed a message stating, “Sorry, TikTok isn’t available right now. A law banning TikTok has been enacted in the U.S.” However, within 12 hours, the platform was restored after President Donald Trump signed an executive order to delay the ban by 75 days, buying time for a potential sale.

In response, Donaldson, along with a group of investors, announced plans to purchase TikTok in order to prevent its closure. On January 15, he shared a video on TikTok where he emphasized his seriousness about the bid, stating, “I just got out of a meeting with a bunch of billionaires. TikTok, we mean business. This is my lawyer right here, we have an offer ready for you, we want to buy the platform.”

The Bid and the Investor Group

The investor group leading the bid is headed by Jesse Tinsley, the founder and CEO of Employer.com. The group includes “institutional investors and high-net-worth individuals” who have expressed a strong desire to see TikTok remain operational in the U.S. The proposal, according to Tinsley, would ensure that the app continues to serve its American audience without disruption, while addressing the national security concerns raised by lawmakers.

DONALD TRUMP speaks to supporters at Cobb Energy Performing Arts Center north of Atlanta on first day of early voting in this swing state.
DONALD TRUMP speaks to supporters at Cobb Energy Performing Arts Center north of Atlanta on first day of early voting in this swing state. Photo: Robin Rayne/ZUMA Press Wire / Shutterstock

“Our offer represents a win-win solution that preserves this vital platform, while addressing legitimate national security concerns,” Tinsley said in a statement. However, the group did not disclose the amount of the bid, and CNN has reached out to TikTok for comment.

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This proposal comes amid a flurry of other potential offers for TikTok. As TikTok’s fate hangs in the balance, there are other parties vying for control of the platform.

Other Potential Buyers

In addition to MrBeast’s group, several other investors have also expressed interest in purchasing TikTok. Chinese officials have reportedly discussed selling part of the app to tech mogul Elon Musk, though these talks have not been confirmed by the parties involved.

Another bidder, called “The People’s Bid for TikTok,” is led by businessman Frank McCourt and Shark Tank investor Kevin O’Leary. This group, backed by investments from Guggenheim Securities and Tim Berners-Lee, the inventor of the World Wide Web, has also made an offer to purchase the platform. McCourt’s group has not disclosed the financial specifics of their bid, but McCourt has previously estimated TikTok’s U.S. assets—excluding the algorithm—to be worth between $20 billion and $50 billion.

“While we are refraining from publicly sharing the financial specifics of our offer, we are confident in our ability to meet the challenges posed by this acquisition and deliver a solution that benefits all stakeholders,” O’Leary and McCourt’s group said in a statement.

The Value of TikTok

The potential sale of TikTok has raised questions about the company’s true value. Analysts estimate that TikTok’s U.S. assets could be worth between $40 billion and $50 billion, excluding the proprietary algorithm that drives its success. However, the app’s algorithm, which personalizes the content users see, is believed to be the core of TikTok’s value, making it difficult to assign an exact price to the platform.

The TikTok logo is displayed outside a TikTok office on August 27, 2020 in Culver City, California. The Chinese-owned company is reportedly set to announce the sale of U.S. operations of its popular social media app in the coming weeks following threats of a shutdown by the Trump administration
CULVER CITY, CALIFORNIA – AUGUST 27: The TikTok logo is displayed outside a TikTok office on August 27, 2020 in Culver City, California. The Chinese-owned company is reportedly set to announce the sale of U.S. operations of its popular social media app in the coming weeks following threats of a shutdown by the Trump administration. (Photo by Mario Tama/Getty Images)

The uncertainty around the app’s valuation is compounded by the political pressure surrounding the sale. While some potential buyers, such as Elon Musk, are exploring various options, the situation remains fluid as the 75-day deadline for a sale looms.

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The 75-Day Deadline

TikTok’s legal and business battles have been ongoing since 2020 when former President Trump issued an executive order attempting to ban the app due to national security concerns. The issue has remained unresolved, with the Supreme Court recently upholding a federal law requiring ByteDance to divest TikTok or face a ban in the U.S.

While the executive order signed by President Trump on January 16 delays the ban by 75 days, it does not provide a permanent solution. The deadline is a critical turning point for TikTok, with ByteDance either needing to sell to a non-China-based buyer or face an eventual ban.

If the proposed sale to MrBeast and his group is successful, it would provide a way for TikTok to maintain its foothold in the U.S. market, preserving its vast user base and providing a path forward amid the ongoing regulatory pressure. However, as the deadline approaches, it remains to be seen whether TikTok will find a solution in time or face a complete shutdown in the U.S.

With multiple high-profile investors now in the mix, including MrBeast, Musk, and McCourt, the future of TikTok in the U.S. remains uncertain, but the pressure is mounting as the clock runs down.

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