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Private Equity Firm Blackstone Exits TikTok US Buyout Talks

By  |  July 21, 2025

Blackstone has withdrawn from a group of U.S. investors pursuing a stake in TikTok’s American operations, adding another layer of uncertainty to a deal already mired in delays and geopolitical tension, according to Reuters.

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    The private equity firm’s exit comes as negotiations over TikTok’s future in the U.S. remain in flux, with prolonged indecision complicating an already sensitive backdrop of U.S.-China trade tensions. Per Reuters, the investment group—led by Susquehanna International Group and General Atlantic—had positioned itself as the leading contender to acquire majority control of TikTok’s U.S. business.

    Blackstone had planned to acquire a minority share in the deal, which was originally encouraged by former President Donald Trump as a way to place TikTok’s American assets under U.S. control. The proposed structure would have seen U.S. investors hold an 80% stake in a newly created U.S. entity, while TikTok’s Chinese parent company, ByteDance, retained a minority interest.

    Reuters reported that other members of the investor group include prominent names such as KKR and Andreessen Horowitz, with Oracle also expected to participate. However, it remains unclear whether all consortium members are still actively pursuing the deal following recent developments.

    Read more: Blackstone Raises Warehouse REIT Bid to £489M, Topping Rival

    The ongoing delays have heightened investor anxiety, as the U.S. government continues to shift deadlines for ByteDance to divest its ownership of TikTok or face an outright ban. According to Reuters, former President Trump issued a third executive order last month that extended the compliance deadline to September 17. A law passed in April 2024 requires ByteDance to sell or shut down TikTok’s U.S. operations by January 19, 2025.

    Some lawmakers have expressed frustration with the administration’s handling of the issue, accusing it of sidestepping legislative intent and overlooking national security risks associated with TikTok’s Chinese ownership. ByteDance, which earned $43 billion in the first quarter of 2025 and recently overtook Meta in revenue, is reportedly evaluating options including selling or restructuring its U.S. assets, per Reuters.

    A potential deal to spin off TikTok’s U.S. arm into a new American-owned company appeared to gain traction earlier this year but was derailed after Beijing signaled it would block any such transaction in response to fresh U.S. tariffs on Chinese imports.

    Source: Reuters