President Donald Trump has mandated that at least 50% of the popular Chinese social media platform be sold to U.S. interests in order to avoid being banned. This comes after the United States Supreme Court ruled that it posed a threat to national security due to data privacy concerns and ties to the Chinese government.
With this mandate handed down, panic set in as U.S. TikTok fans wondered if someone would step forth to buy the platform to keep it open to them. Popular influencer Jimmy Donaldson, known throughout social media as MrBeast, offered to do exactly that.
While the details are still emerging, one thing has become increasingly clear: if Donaldson buys TikTok, he won’t be doing it alone.
Jimmy Donaldson, known on social media as MrBeast, may be considering joining a bid to buy TikTok. (Photo by Alberto E. Rodriguez/Getty Images)(Photo by Alberto E. Rodriguez/Getty Images)
Will MrBeast buy TikTok? The world wants to know
Since last week, Donaldson has been in full focus as young people ask if he will be able to buy TikTok and their parents ask who exactly he is.
To answer the second question, Donaldson is a 26 year old influencer who rose to fame on Youtube throughout the mid 2000s, primarily by filming himself doing outrageous pranks or dangerous stunts. He is currently estimated to be worth roughly $500 million, making him one of social media’s wealthiest content creators.
Does that put him in a position to buy TikTok? Certainly not by himself. As TheStreet reports, “Wedbush Securities analyst Dan Ives estimates that it is worth “well north of $US100 billion ($161 billion)” and could sell for as much as “$200 billion.”
Thankfully for Donaldson, he is reportedly being courted by multiple wealthy parties who want him to join their bid to acquire TikTok and keep it open to U.S. users. The list of interested buyers includes real estate tycoon Frank McCourt and serial entrepreneur Jessie Tinsley, who recently posted to X that Donaldson would be joining his bid:
However, a representative for Donaldson recently told the Associated Press that while his client is in discussions with several interested buyers, he has “no exclusive agreements with any of them.”
This raises an important question. As Donaldson is only worth $500 million, why are people with significantly more capital so intent on having him join their team to acquire TikTok?
Rick Smith, a Managing Director at M&A specialist Forbes Burton shared his take on the potential acquisition with TheStreet.
“When looking at an acquisition, it's often worth conceding a share of the company in exchange for somebody's expertise.” However, as he sees it, the incentive to work with Donaldson lies not in expertise, but in marketing value.
Other experts share the opinion that Doanldson’s suitors see the value that he can bring to their brand. “Attention is currency in today’s marketplace, and MrBeast is one of the most influential figures out there, bringing unparalleled "clout" to the table,” states Justin Goldsberry, CEO of Goldsberry Management Group.
He adds that “For both Jesse Tinsley and Frank McCourt, aligning with MrBeast offers a unique opportunity to amplify their platforms, enhance audience engagement, and strengthen their brands' connections with younger, tech savvy audiences.”
What MrBeast brings to the table for TikTok buyers
Goldsberry also highlights Donaldson’s ability to command attention and attract audiences that few influencers have been able to match. It is true that he has managed to build a career and million dollar media brand from a Youtube channel that took years to demonstrate any real growth.
Additionally, Donaldson remains one of the best known figures among young audiences and working with him could help ensure that TikTok remains popular among the age demographics that have made it so successful.
Joshua Wood, CEO of CJ Digital provided further context on how Donaldson could provide value to potential TikTok buyers, using Tinsley as an example.
“The owner of employer.com (with just his money) isn't very attractive as they have no experience in building short form video content or apps,” he notes. “This is where Mr. Donaldson (MrBeast) comes in - he is the number 1 creator in the world and he has the young people on his side (the main users of the app).”
So far, Donaldson hasn't shared any updates regarding his plans to purchase TikTok or if he is leaning toward working with Tinsley, McCourt, or anyone else. There has also been considerable speculation that Tesla (TSLA) CEO Elon Musk may try to buy TikTok, although its parent company initially dismissed this claim.
