Project Liberty’s McCourt: We Are the Only TikTok Bidder that Meets the SCOTUS’ Criteria

EISEN Because our next ░░░░░░░░ is leading a formal ░░░░░░░░ to buy the platform ░░░░░░░░ U S assets in ░░░░░░░░ of avoiding a shutdown ░░░░░░░░ addressing concerns around privacy ░░░░░░░░ data security The group ░░░░░░░░ t disclosing the financial ░░░░░░░░ of the offer but ░░░░░░░░ said they believe TikTok ░░░░░░░░ worth about 20 billion ░░░░░░░░ us more that s ░░░░░░░░ U S of course ░░░░░░░░ McCourt founder of Project ░░░░░░░░ former owner of the ░░░░░░░░ A Dodgers Frank it ░░░░░░░░ good to have you ░░░░░░░░ What is the status ░░░░░░░░ your bid MCCOURT Well ░░░░░░░░ s first of all ░░░░░░░░ s take a look ░░░░░░░░ what the Supreme Court ░░░░░░░░ just ruled 9 0 ░░░░░░░░ the way They ve ░░░░░░░░ the national security risks ░░░░░░░░ ByteDance of the U ░░░░░░░░ TikTok app that is ░░░░░░░░ they ve said look ░░░░░░░░ s got to be ░░░░░░░░ down or sold EISEN ░░░░░░░░ MCCOURT And if it ░░░░░░░░ sold it s going ░░░░░░░░ be sold to an ░░░░░░░░ which disentangles the technology ░░░░░░░░ the Chinese technology the ░░░░░░░░ algorithm So that is ░░░░░░░░ criteria And we I ░░░░░░░░ are the only bidder ░░░░░░░░ meets this criteria We ░░░░░░░░ a proposal that not ░░░░░░░░ we put forward to ░░░░░░░░ with the financial support ░░░░░░░░ also the technology the ░░░░░░░░ American stack to move ░░░░░░░░ user base of TikTok ░░░░░░░░ the data over to ░░░░░░░░ stack disentangle the technology ░░░░░░░░ the Chinese technology so ░░░░░░░░ in fact President Elect ░░░░░░░░ can extend for 90 ░░░░░░░░ the deadline EISEN There ░░░░░░░░ a number of challenges ░░░░░░░░ and the biggest perhaps ░░░░░░░░ is the Chinese and ░░░░░░░░ they would agree to ░░░░░░░░ a thing Do you ░░░░░░░░ any indication MCCOURT We ░░░░░░░░ see The Chinese and ░░░░░░░░ in particular was waiting ░░░░░░░░ this decision And the ░░░░░░░░ is in Their legal ░░░░░░░░ now is exhausted And ░░░░░░░░ now they have to ░░░░░░░░ a decision are they ░░░░░░░░ to let it be ░░░░░░░░ down or are they ░░░░░░░░ to go ahead and ░░░░░░░░ with the law and ░░░░░░░░ with the Supreme Court ░░░░░░░░ decision So now the ░░░░░░░░ s in their court ░░░░░░░░ Frank what is involved ░░░░░░░░ as you say disentangling ░░░░░░░░ technology from China I ░░░░░░░░ if you don t ░░░░░░░░ have the base code ░░░░░░░░ seems to be behind ░░░░░░░░ engagement engine that TikTok ░░░░░░░░ benefited from what are ░░░░░░░░ actually buying and why ░░░░░░░░ ByteDance want to separate ░░░░░░░░ things MCCOURT Well ByteDance ░░░░░░░░ not want to separate ░░░░░░░░ things but the law ░░░░░░░░ requiring it And if ░░░░░░░░ separates those things they ░░░░░░░░ have assets that they ░░░░░░░░ sell And so the ░░░░░░░░ S investors actually make ░░░░░░░░ And those assets include ░░░░░░░░ user base the data ░░░░░░░░ of course the brand ░░░░░░░░ what is off limits ░░░░░░░░ any buyer is the ░░░░░░░░ technology That s the ░░░░░░░░ security risk right The ░░░░░░░░ for China to surveil ░░░░░░░░ million Americans and more ░░░░░░░░ the ability for China ░░░░░░░░ influence 170 million Americans ░░░░░░░░ s the national security ░░░░░░░░ It s a grave ░░░░░░░░ The Supreme Court has ░░░░░░░░ that crystal clear So ░░░░░░░░ is a way forward ░░░░░░░░ the way forward is ░░░░░░░░ the U S TikTok ░░░░░░░░ user base and the ░░░░░░░░ from the Chinese technology ░░░░░░░░ Well another obstacle is ░░░░░░░░ price I am curious ░░░░░░░░ you are valuing this ░░░░░░░░ S business We just ░░░░░░░░ from some analysts MKM ░░░░░░░░ told us what 80 ░░░░░░░░ Wedbush is talking about ░░░░░░░░ to 200 billion What ░░░░░░░░ of valuation are you ░░░░░░░░ at And can you ░░░░░░░░ MCCOURT Yeah well let ░░░░░░░░ be realistic The entire ░░░░░░░░ is you can buy ░░░░░░░░ interest in ByteDance in ░░░░░░░░ entirety for 200 and ░░░░░░░░ billion So we re ░░░░░░░░ about a small fraction ░░░░░░░░ ByteDance the U S ░░░░░░░░ assets That s about ░░░░░░░░ percent of the revenue ░░░░░░░░ less than 8 percent ░░░░░░░░ the user base And ░░░░░░░░ re talking about without ░░░░░░░░ algorithm So I think ░░░░░░░░ need to be realistic ░░░░░░░░ what the valuation is ░░░░░░░░ let s start with ░░░░░░░░ know it s more ░░░░░░░░ nothing and we know ░░░░░░░░ s worth less than ░░░░░░░░ entire ByteDance company which ░░░░░░░░ can look and see ░░░░░░░░ that s selling for ░░░░░░░░ the secondary market So ░░░░░░░░ s somewhere in between ░░░░░░░░ we ve done the ░░░░░░░░ and we ve come ░░░░░░░░ with a number It ░░░░░░░░ a very big number ░░░░░░░░ it to ByteDance We ░░░░░░░░ raised the funds to ░░░░░░░░ the platform and we ░░░░░░░░ ready to do business ░░░░░░░░ we meet the criteria ░░░░░░░░ out by the Supreme ░░░░░░░░ this morning as to ░░░░░░░░ is required for a ░░░░░░░░ to happen.”