In a surprising development in the ongoing TikTok divestiture saga, Tim Stokely, the founder of adult content platform OnlyFans, has entered the race to acquire TikTok's US operations. With the April 5 deadline looming for ByteDance to sell TikTok or face a US ban, this unexpected bid adds another layer of complexity to an already contentious process.
The Unexpected Contender
Tim Stokely has partnered with cryptocurrency company The Hbar Foundation to submit an eleventh-hour proposal to purchase TikTok's US operations from ByteDance. The bid was made through Zoop, a social media startup that Stokely co-founded with RJ Phillips, who serves as CEO. Unlike OnlyFans, which is known for adult content, Zoop positions itself as a mainstream social media platform with a focus on creator economics. According to its website, Zoop claims to distribute 80% of its ad revenue directly to creators and users.
Zoop's creator-focused model: Claims to distribute 80% of ad revenue to creators and users
A Creator-First Vision
Phillips described their bid as a David vs. Goliath moment against traditional social media giants in a statement to WIRED. The Zoop team's vision centers on restructuring the social media industry in what they consider a more equitable way. Creators bring eyeballs to the pages, and therefore they should be the ones sharing in the lion's share of the ad revenue. Users that are engaging with that content should also be the ones benefiting, Phillips explained. This creator-centric approach could potentially resonate with TikTok's vast community of content creators who have built careers on the platform.
The Blockchain Connection
The partnership with The Hbar Foundation might provide a strategic advantage in addressing some of the national security concerns that prompted the potential TikTok ban. The Hbar Foundation operates the Hedera network, described as a secure, transparent, and enterprise-grade public ledger blockchain technology based in the United States. This US-based blockchain infrastructure could potentially address data security concerns that lawmakers have raised regarding TikTok's Chinese ownership.
A Crowded Field of Bidders
Stokely and Phillips are not alone in their pursuit of TikTok. Amazon has also submitted a last-minute offer this week, joining at least four other groups being considered by the White House. Other potential deals reportedly include a team of US investors featuring Larry Ellison's Oracle and private equity firm Blackstone. Previous reports have mentioned interest from tech giants like Microsoft, AI startup Perplexity AI, and even Elon Musk and content creator MrBeast.
Key bidders for TikTok:
- Zoop (founded by Tim Stokely of OnlyFans) with The Hbar Foundation
- Amazon
- Potential consortium including Oracle and Blackstone
- Microsoft (reported interest)
- Perplexity AI (reported interest)
- Elon Musk and MrBeast (reported interest)
The White House's Unusual Role
The acquisition process has taken an unconventional path, with the White House essentially acting as the auctioneer rather than ByteDance controlling the sale. The process is actually very unique; it's being run by the White House and not by ByteDance, Phillips told WIRED. President Trump was scheduled to consider multiple offers during a closed-door Oval Office meeting with Vice President JD Vance and US Secretary of Commerce Howard Lutnick, who are spearheading the sale process.
The Looming Deadline
ByteDance faces an imminent deadline of April 5 to agree to a proposal from a US buyer, or TikTok will be banned in the United States under legislation that took effect in January 2025. The law was passed due to national security concerns that the Chinese government could potentially access data from TikTok's 170 million American users. While Trump extended the potential ban until spring to find a suitable buyer, he has previously indicated that he might consider further extending the deadline if necessary.
Divestiture deadline: April 5, 2025
The Algorithm Question
One significant complication in any potential deal involves TikTok's algorithm, which is widely considered the platform's most valuable asset. There remains uncertainty about whether ByteDance would be able to sell the algorithm outright, as China introduced restrictions in 2020 that would require government approval to export such technology. One alternative being discussed involves American investors purchasing TikTok while ByteDance retains ownership of the algorithm and leases it to the buyer.
TikTok US user base: 170 million users
What Comes Next
As the deadline approaches, all eyes are on the White House to announce which bid, if any, will move forward. Whether a traditional tech giant like Amazon, a consortium led by Oracle, or the dark horse bid from Stokely's Zoop prevails remains to be seen. What is clear is that the outcome will have significant implications for the future of social media, creator economics, and US-China technology relations.