Top Silicon Valley Investor Alexis Ohanian Joins Bid to Acquire TikTok's U.S. Subsidiary

Alexis Ohanian, co-founder of Reddit, has announced that he is joining a group of investors in their bid to acquire TikTok's U.S. subsidiary. This move marks the latest development in a series of attempts by high-profile investors to take control of the popular video-based social media company.

Ohanian's decision to join the acquisition effort was revealed on Tuesday, as he expressed his enthusiasm for the project and its potential to bring about significant changes to the way users interact with social media. "I'm officially now one of the people trying to buy TikTok U.S.—and bring it on-chain," Ohanian stated, hinting at the decentralized nature of the proposed acquisition.

One key aspect of the planned acquisition is the desire to establish a more equitable and transparent ownership structure for TikTok's users. As part of this effort, the new ownership group aims to create an alternative platform that prioritizes user data protection and provides creators with greater control over their audience. "Users should own their data," Ohanian emphasized. "Creators should own their audience. Period."

The idea of decentralized social media has been gaining momentum in recent months, driven in part by concerns about the concentration of power and data collection practices among large tech companies like TikTok. In May last year, President Joe Biden signed a bill aimed at banning TikTok from the U.S. market due to concerns that China's government may have access to user data and exert influence over content.

In response to this proposed ban, TikTok sued the federal government, arguing that its operations in the United States were not subject to Chinese government control. The case went all the way to the Supreme Court, where a majority of justices appeared inclined to uphold the ban. However, before any final decision was made, incoming President Donald Trump intervened, extending the deadline for potential deals by 90 days.

During this period, TikTok's U.S. operations were temporarily suspended, but ultimately resumed once the clock expired. In an address during a rally at the time, Trump stated that his administration had "no choice" but to save the app, which he believed was essential to keeping the nation connected and informed.

Competing Bids and the Future of TikTok

The acquisition bid led by Ohanian faces competition from other groups seeking to take control of TikTok's U.S. subsidiary. One prominent contender is an investor group represented by Jimmy Donaldson, known online as MrBeast, a popular YouTuber with millions of followers.

Estimates suggest that the price tag for acquiring TikTok's U.S. operations could be as high as $50 billion, according to Angelo Zino, senior vice president at CFRA, a financial research firm. While the exact details of each bid remain uncertain, one thing is clear: the future of TikTok in the United States hangs in the balance.

Decentralized Social Media and Its Promise

The decentralized social media model that Ohanian and his fellow investors propose aims to revolutionize the way users interact with online platforms. By allowing creators to own their audience and giving users greater control over their data, the new ownership structure promises to reduce the influence of corporate advertisers and create a more participatory online environment.

Key features of this decentralized approach include:

• The creation of blockchain-based social media platforms that provide transparency and security
• The use of cryptocurrencies to incentivize creators and reward users for contributing value
• The decentralization of content moderation, allowing communities to manage their own discussions and conversations

While the details of the proposed acquisition are still being worked out, one thing is certain: the future of TikTok in the United States will be shaped by the principles of decentralized social media.

Conclusion

The bid led by Alexis Ohanian to acquire TikTok's U.S. subsidiary represents a significant development in the ongoing saga surrounding the popular video-based social media company. As investors and entrepreneurs continue to vie for control, one thing is clear: the future of online communication will be shaped by the principles of decentralized social media.

In this new landscape, users and creators will have greater control over their data and audience, reducing the influence of corporate advertisers and creating a more participatory online environment. Whether Ohanian's bid succeeds or not, one thing is certain: the world of social media will never be the same again.