Blackstone Eyes Minority Stake in TikTok’s US Business Amid Divestment Push
Private equity giant Blackstone is exploring a potential minority investment in TikTok’s US operations, according to sources familiar with the matter. The move comes as pressure mounts for Chinese parent ByteDance to divest its stake due to a US law targeting national security concerns.
Blackstone is in talks to join a consortium of ByteDance’s non-Chinese investors, including Susquehanna International Group and General Atlantic, who are already leading efforts to fund the spin-off of TikTok’s US business. The group is currently seen as the leading contender in negotiations.
A Plan to Limit Chinese Ownership
The proposed deal involves spinning off TikTok’s US unit into a separate company. This new entity would dilute Chinese ownership to below 20%, meeting the legal threshold set by the US government.
While TikTok, General Atlantic, and Blackstone declined to comment, Susquehanna did not respond to requests for comment. ByteDance also remains silent on the precise amount of new investment needed to buy out its Chinese shareholders.
Legal disclosures from TikTok last year indicate that 58% of ByteDance is owned by global investors, while founder Zhang Yiming holds 21%. The remaining 21% is held by employees of various nationalities, including about 7,000 Americans.
Law-Driven Uncertainty and Temporary Reprieve
TikTok’s future in the US has remained uncertain since Congress passed a bipartisan law in 2024 mandating ByteDance to sell its TikTok stake by 19 January 2025 or face a ban. The app briefly went offline in January following a Supreme Court ruling upholding the ban.
However, TikTok returned shortly after President Donald Trump delayed enforcement until 5 April 2025. Trump has hinted that he may extend the deadline again, suggesting tariff reductions on China as part of a broader deal. Vice President JD Vance expressed optimism that the framework of a resolution would be reached by April.
White House Plays Key Role in Talks
In an unusual move, the White House has been deeply involved in the negotiation process, playing a hands-on role in coordinating investment strategy. Reports from January suggest that Trump’s administration is developing a deal that could involve Oracle and other ByteDance investors taking over TikTok’s US operations.
As talks progress, investors remain cautious yet hopeful that a deal can be struck in time to secure TikTok’s future in one of its largest markets.
with inputs from Reuters
