In this photo illustration, the logo of TikTok is displayed on a smartphone screen on April 5, 2025 in Shanghai, China.
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Private equity giant Blackstone has withdrawn from a consortium seeking to invest in TikTok’s U.S. operations, a source familiar with the matter told Reuters on Friday.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 hademerged 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.