Blackstone Is Reportedly Backing Off TikTok Investment Plans

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Private equity firm Blackstone reportedly withdraws from the consortium looking to invest in TikTok’s U.S. operations.

Blackstone Group, the private equity giant that planned to take a minority stake in TikTok’s U.S. operations, has withdrawn from the consortium led by Susquehanna International Group and General Atlantic. A source familiar with the matter confirmed the news to Reuters over the weekend.

It’s just the latest change to drop amid increasing uncertainty surrounding the TikTok deal at the center of the United States-China trade talks.

The Susquehanna-led consortium emerged as the front-runner interested in securing TikTok’s future in the United States in a deal under which U.S. investors would own 80% of the company. China-based parent company ByteDance, meanwhile, would retain a minority stake.

But the deadline by which ByteDance must divest the social media platform in the U.S. or face a federal ban has been repeatedly postponed. Trump signed a third executive order last month to extend the deadline by another 90 days. Currently, the cutoff is September 17.

Initially, Congress passed the law mandating the sale-or-shutdown ultimatum in April last year, with the deadline set for January 19, 2025. Extensions of that deadline have understandably drawn criticism from lawmakers, who assert the Trump administration is abusing its power while ignoring national security concerns related to Chinese control of TikTok.

A deal has been in motion since the spring to turn TikTok’s U.S. operations into a new company based in the United States. But discussions were put on hold after China indicated an unwillingness to parlay following Trump’s announcement of steep tariffs.

The interested consortium—favored by the Trump administration in a deal for TikTok—also includes KKR, Andreessen Horowitz, and tech giant Oracle. Should the deal be finalized, the new U.S.-version of the TikTok platform is expected to be owned by a joint venture formed by the American-based investor consortium and ByteDance. However, it’s unclear if this would meet the requirements of the Congress-passed law.

Blackstone’s exit from the consortium underscores the uncertainties at play, further putting TikTok’s future in the United States into question.

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