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Exclusive-Blackstone drops out of consortium bid for TikTok US, source says
Published by Global Banking & Finance Review®
Posted on July 18, 2025
3 min readLast updated: January 22, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on July 18, 2025
3 min readLast updated: January 22, 2026
Blackstone exits TikTok US bid amid deal uncertainty, impacting US-China trade talks. ByteDance faces pressure to divest TikTok US operations.
By Dawn Chmielewski and Krystal Hu
(Reuters) -Private equity giant Blackstone has withdrawn from a consortium seeking to invest in TikTok’s U.S. operations, a source familiar with the matter told Reuters on Friday.
The latest change came as uncertainty has mounted and there have been several delays in the TikTok deal now at the center of U.S.-China trade talks.
Blackstone had planned to take a minority stake in the TikTok U.S. business in a deal orchestrated by President Donald Trump. The consortium is led by Susquehanna International Group and General Atlantic, current investors in TikTok's Chinese owner ByteDance. The group had emerged as the front-runner to secure TikTok’s U.S. business in a deal under which U.S. investors would own 80% of TikTok, while ByteDance would retain a minority stake.
Blackstone declined to comment. TikTok did not immediately respond to a request for comment.
The deadline for ByteDance to divest the popular social media app in the U.S. has been repeatedly postponed, creating uncertainty for investors.
Last month, Trump signed a third executive order extending the deadline for ByteDance to sell TikTok or face a ban, moving the cutoff to September 17. In April 2024, Congress passed a law mandating a sale or shutdown of TikTok by January 19, 2025.
Extensions to the deadline have drawn criticism from some lawmakers, who argue the Trump administration is “flouting the law” and ignoring national security concerns related to Chinese control over TikTok.
ByteDance is exploring various options to address these concerns, including selling or restructuring its U.S. operations. The Chinese social media giant, which raked in $43 billion in the first three months of this year, recently surpassed Meta in quarterly revenue, sources told Reuters.
The U.S. consortium, favored by the administration in any TikTok deal, also includes KKR, as well as new investors such as Andreessen Horowitz, Reuters previously reported. Oracle is also likely to take a stake. It is unclear whether other bidders in the consortium are still involved.
A deal had been in the works this spring to spin off TikTok’s U.S. operations into a new U.S.-based firm. Talks were put on hold after China indicated it would not approve the transaction, following Trump’s announcement of steep tariffs on Chinese goods.
If a sale is finalized, the new U.S. app is expected to be owned by a joint venture formed by an American investor consortium and ByteDance, which would maintain a minority stake. TikTok is already working on a U.S.-specific app, sources told Reuters.
Blackstone’s exit highlights the complexities and uncertainties involved in the deal, as the ongoing talks over TikTok’s fate have now become part of Trump’s broader trade negotiations with China, and Trump said he would speak to President Xi Jinping about it.
(Reporting by Dawn Chmielewski in Los Angeles and Krystal Hu in New York; Editing by David Gregorio)
Blackstone has withdrawn from the consortium due to mounting uncertainty and delays in the TikTok deal, which is central to U.S.-China trade discussions.
Blackstone's exit highlights the complexities and uncertainties involved in the TikTok deal, which has become entangled in broader trade negotiations between the U.S. and China.
The deadline for ByteDance to divest TikTok's U.S. operations has been postponed multiple times, with the latest cutoff set for September 17, following an executive order from Trump.
The U.S. consortium includes KKR, Susquehanna International Group, and new investors like Andreessen Horowitz, with Oracle likely to participate as well.
Some lawmakers criticize the extensions to the divestment deadline, arguing that the Trump administration is ignoring national security concerns related to Chinese control over TikTok.
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