Politics

Frank McCourt Challenges TikTok Deal: Will It Pass the National Security Test?

Frank McCourt questions the TikTok deal’s legality. He seeks transparency, focusing on data privacy and national security.

byEditorial Staff

October 14, 2025, 8:40 AM

The silhouette of Donald Trump pointing at the TikTok logo, symbolizing the political conflict between the US and the Chinese social network. By kovop / Shutterstock.com.

Executive Summary

Billionaire Frank McCourt is investigating the legality and transparency of the White House-brokered deal for a majority-American investor group to acquire TikTok’s U.S. assets, questioning its compliance with the sale-or-ban law and national security concerns.

The proposed TikTok acquisition involves a new investor group, including Oracle and Fox Corp., and was affirmed by President Trump as a “qualified divestiture,” though details on how the algorithm will be licensed and national security addressed remain largely undisclosed.

McCourt, through his nonprofit Project Liberty, is developing new technology, including personalized AI agents, to empower users with greater control over their online data and how it is shared, especially in the era of artificial intelligence.

The Story So Far

The current scrutiny surrounding TikTok’s potential acquisition in the U.S. stems from a “sale-or-ban law” enacted last year, driven by long-standing national security concerns regarding potential risks to U.S. user data due to its China-based parent company, ByteDance. While President Trump affirmed a White House-brokered agreement for a majority-American investor group to purchase TikTok’s U.S. assets as a “qualified divestiture,” billionaire investor Frank McCourt, who was an early bidder, is now investigating the deal’s legality and transparency, questioning whether it fully complies with the law and adequately resolves the national security issues.

Why This Matters

Investor Frank McCourt’s scrutiny of the White House-brokered TikTok acquisition highlights ongoing legal and national security concerns surrounding the deal, potentially complicating its finalization. This development, alongside McCourt’s continued focus on empowering users with data control through Project Liberty, underscores a broader industry and regulatory push for greater transparency and individual sovereignty over digital information, particularly as AI integration expands.

Who Thinks What?

Billionaire investor Frank McCourt is scrutinizing the legality and transparency of the White House-brokered agreement for a majority-American investor group to purchase TikTok’s U.S. assets, questioning its compliance with the sale-or-ban law and its ability to adequately address national security concerns, while also advocating for enhanced user data control.

The White House, under President Trump, has affirmed the proposed deal for a majority-American investor group to acquire TikTok’s U.S. assets as a “qualified divestiture” under the sale-or-ban law, aiming to separate the app from its China-based parent company amid concerns over potential risks to U.S. user data and national security.

Billionaire investor Frank McCourt, who previously sought to acquire TikTok, is now scrutinizing the legality of the White House-brokered agreement for a majority-American investor group to purchase the app’s U.S. assets. McCourt stated he believes the American public requires greater transparency regarding the deal and is investigating whether it complies with last year’s sale-or-ban law and adequately addresses national security concerns.

TikTok Acquisition Scrutiny

McCourt, alongside investors like Kevin O’Leary and Alexis Ohanian, was an early bidder for TikTok after a law was passed requiring its divestiture or a ban in the United States. His group aimed to acquire TikTok without its proprietary algorithm, intending to rebuild it using new technology developed by his nonprofit, Project Liberty, to enhance user data control.

The proposed deal involves a different investor group, expected to include Oracle, private equity firm Silver Lake, Dell CEO Michael Dell, and Lachlan Murdoch’s Fox Corp. This development is the latest in a years-long effort to separate the popular video app from its China-based parent company, ByteDance, amid concerns over potential risks to U.S. user data and national security.

President Trump signed an executive order last month, affirming the deal as a “qualified divestiture” under the ban-or-sale law, an essential step in advancing the sale. However, many aspects of the agreement remain undisclosed, particularly how the new ownership will license TikTok’s algorithm from ByteDance while still addressing the underlying national security issues. The new group is expected to receive the algorithm and retrain it on U.S. user data, with Oracle monitoring content delivery.

McCourt’s Post-TikTok Plans

Despite probing the current proposal, McCourt emphasized that he has not abandoned his original goal of empowering users with data control. He is now focused on developing technology to help individuals protect their online data, especially in the era of artificial intelligence.

McCourt’s Project Liberty is exploring the creation of a personalized AI agent that would manage where and how a user’s data is shared across the internet. This agent would operate based on user instructions, allowing individuals to define what information they are willing to share and for what purposes, and even to rescind permissions over time.

McCourt highlighted the increasing importance of such controls, noting that unlike inferences drawn from online behavior, users directly share personal details with AI chatbots. He suggested that users should own their data and share in the economic value generated when their data is utilized by platforms.

Key Takeaways

As the TikTok acquisition process continues, Frank McCourt’s dual focus on scrutinizing the deal’s legal compliance and pioneering new technologies for data sovereignty underscores ongoing debates about digital privacy and national security in the technology sector.