Private equity firm Blackstone is considering a minority investment in TikTok’s U.S. operations, according to two sources familiar with the situation.
Blackstone is in discussions to join other non-Chinese investors in TikTok’s parent company, ByteDance. This group, which includes Susquehanna International Group and General Atlantic, is aiming to secure new capital to bid for TikTok’s U.S. business. These investors have emerged as the leading candidates.
The proposed plan would involve spinning off TikTok’s U.S. operations into a separate entity, with a reduction of Chinese ownership to under 20%, complying with U.S. law.
TikTok, General Atlantic, and Blackstone have all declined to comment. Susquehanna did not respond to a request for comment.
The future of TikTok, used by nearly half of Americans, has been uncertain since a law passed last year mandated ByteDance divest TikTok by January 19 or face a potential ban due to national security concerns.
TikTok was briefly unavailable in the U.S. in January after the Supreme Court upheld the ban. However, it resumed operation days later after President Donald Trump took office and delayed the law’s enforcement until April 5.
Trump has suggested extending the deadline further and hinted at reducing tariffs on China to help facilitate an agreement. U.S. Vice President JD Vance stated that a general framework for resolving the ownership issue could be finalized by the April deadline.
ByteDance and its investors have not revealed how much new investment would be needed to buy out Chinese stakeholders and meet U.S. legal requirements.
Legal documents from TikTok last year indicated that global investors own about 58% of ByteDance. The company’s Chinese founder, Zhang Yiming, holds 21%, while employees, including around 7,000 Americans, own the remaining 21%.
The White House has taken an active role in the discussions, essentially acting as a mediator for the deal.
Reports from January indicated that the Trump administration was working on a plan involving Oracle and other ByteDance investors to assume control of TikTok’s U.S. operations.
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