Private equity giant Blackstone is exploring a potential minority investment in TikTok’s U.S. business, sources familiar with the discussions revealed. The move would see Blackstone join a coalition of non-Chinese investors, spearheaded by Susquehanna International Group and General Atlantic, who are positioning themselves as leading contenders to acquire the popular short-video platform’s American operations.
The investor group is working on a plan to separate TikTok’s U.S. entity from its Chinese parent company, ByteDance, while reducing Chinese ownership to under 20%—a key requirement under U.S. regulations. This comes as TikTok faces a critical deadline: ByteDance must divest its U.S. operations by April 5, or the app risks being banned in the United States due to national security concerns.
The divestment mandate stems from legislation passed last year with strong bipartisan backing, which initially set a January 19 deadline for ByteDance to sell TikTok. The app briefly ceased functioning in the U.S. in January after the Supreme Court upheld the ban, only to resume operations days later when President Donald Trump assumed office and delayed enforcement to the current April deadline.
Trump has hinted at further extending the deadline and has floated the idea of lowering tariffs on China as leverage to secure a resolution. Vice President JD Vance expressed optimism this week, suggesting that a deal addressing TikTok’s ownership could be finalized by early April.
Details about the financial scope of the investment remain undisclosed, with ByteDance and its backers yet to reveal how much capital would be required to buy out Chinese stakeholders and comply with U.S. law. According to previous TikTok disclosures, ByteDance’s ownership is split with global investors holding roughly 58%, founder Zhang Yiming owning 21%, and a diverse group of employees—including approximately 7,000 Americans—controlling the remaining 21%.
The White House has taken an unusually hands-on role in facilitating the negotiations, acting as a de facto mediator in the high-stakes talks. Earlier reports in January indicated that the Trump administration was exploring a structure involving Oracle and select ByteDance investors to oversee TikTok’s U.S. operations.
Representatives from TikTok, Blackstone, and General Atlantic declined to comment on the developments, while Susquehanna International Group did not respond to inquiries.
With nearly half of the U.S. population using TikTok, the outcome of these negotiations carries significant implications for both national security policy and the global tech landscape.
Reporting by Sarah Jennings in Washington, with contributions from Michael Chen in San Francisco and Emily Zhao in Shanghai.
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