Alexis Ohanian, co-founder of Reddit Inc. RDDT, announced his intentions to acquire TikTok’s U.S. operations and transition it to a blockchain-based platform on Tuesday.

What Happened: Ohanian confirmed the ambitious plan via an X post, stating, “I’m officially now one of the people trying to buy TikTok US — and bring it on-chain.”

The tech entrepreneur emphasized the importance of decentralizing the social media app so that creators and users have greater control. Ohanian expressed confidence that greater transparency and accountability will make TikTok not just fairer but greater in the future.

“We’re setting a new standard for what's possible in digital communities. A TikTok for the people, by the people. Let’s see if we can pull this off,” Ohanian said.

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Why It Matters: Ohanian’s announcement comes amid ongoing negotiations over the sale of TikTok’s U.S. operations. He joined Project Liberty—a consortium led by billionaire Frank McCourt to purchase the platform and transition it into an open source, decentralized protocol. Project Liberty will use the Frequency blockchain to integrate TikTok if the deal goes through.

However, Ohanian’s bid is not the only one on the table. Jeff Bezos-backed Perplexity has also reportedly made a move to merge with TikTok US. Tesla CEO Elon Musk, meanwhile, has dismissed rumors of his interest in acquiring the social media giant.

Negotiations to sell TikTok’s U.S. operations appear to be at a deadlock, as its Chinese parent firm, ByteDance, has delayed progress while waiting for Beijing’s approval.

Price Action: Shares of Reddit were up 2.41% in pre-market trading, after closing 2.02% lower at $159.17 during Tuesday’s trading session

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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