Posted By Global Banking and Finance Review
Posted on March 28, 2025
By Dawn Chmielewski, Katie Paul and Kane Wu
(Reuters) -Private equity firm Blackstone is evaluating making a small minority investment in TikTok's U.S. operations, according to two people familiar with the matter.
Blackstone is discussing joining Chinese parent company ByteDance's existing non-Chinese shareholders, led by Susquehanna International Group and General Atlantic, in contributing fresh capital to bid for TikTok's U.S. business. The group has emerged as front-runners.
Their proposal entails spinning off TikTok's U.S. operations into a separate entity and diluting Chinese ownership in the new business to below the 20% threshold required by U.S. law.
TikTok, General Atlantic, and Blackstone declined to comment. Susquehanna did not respond to a request seeking comment.
The fate of the app used by nearly half of all Americans has been up in the air since a law, passed last year with overwhelming bipartisan support, required ByteDance to divest TikTok by January 19 or face a ban on national security grounds.
TikTok briefly went dark in the U.S. in January after the Supreme Court upheld the ban, but flickered back to life days later once U.S. President Donald Trump took office and postponed enforcement of the law to April 5.
Trump has said he may extend that deadline further and dangled a possible reduction in tariffs on China to try to get a deal done. U.S. Vice President JD Vance said he expects the general terms of an agreement that resolves ownership of the app to be reached by the April deadline.
ByteDance and its investors have not disclosed how much fresh investment would be needed to buy out Chinese shareholders and meet the requirements of the U.S. law.
According to legal filings from TikTok last year, global investors own about 58% of ByteDance, while the company's Chinese founder Zhang Yiming owns another 21% and employees of different nationalities - including about 7,000 Americans - own the remaining 21%.
The White House has been involved to an unprecedented level in the closely watched deal talks, effectively playing the role of investment bank.
Reuters and others reported in January that Trump's administration was working on a plan for TikTok that would involve tapping Oracle and some existing ByteDance investors to take control of the app's operations.
(Reporting by Dawn Chmielewski in Los Angeles, with additional reporting from Katie Paul and Krystal Hu in New York and Kane Wu in Hong Kong; editing by Kenneth Li and Marguerita Choy)