Blackstone Exits Consortium Bidding for TikTok US

Blackstone has reportedly exited a consortium bidding for a majority stake in TikTok's US operations. The private equity firm, BlackRock, left the consortium due to a source familiar with the matter. The consortium was looking to strike a deal for TikTok's US operations, owned by Chinese firm ByteDance.

Private equity giant Blackstone has withdrawn from a consortium seeking to invest in TikTok’s U.S. operations, a source familiar with the matter told Reuters on Friday [1]. 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, led by Susquehanna International Group and General Atlantic, both existing equity holders in ByteDance, TikTok’s Chinese parent firm, had been seen as a major player to purchase TikTok’s U.S. business [2, 3].

Under the proposed structure, U.S.-based investors were likely to own 80% equity in TikTok, while ByteDance would retain a minority stake. 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 [1].

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 [1].

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 [1]. 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 [1].

The U.S. consortium, favored by the administration in any TikTok deal, also includes KKR, as well as new investors such as Andreessen Horowitz. Oracle is also likely to take a stake. It is unclear whether other bidders in the consortium are still involved [1, 2, 3].

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 [1].

Blackstone’s exit from the consortium underscores the challenges in reaching a deal, as the ongoing negotiations have become intertwined with broader U.S.-China trade discussions [1].

References:
[1] https://www.reuters.com/legal/transactional/blackstone-drops-out-consortium-bid-tiktok-us-source-says-2025-07-18/
[2] https://ca.finance.yahoo.com/news/exclusive-blackstone-drops-consortium-bid-224655664.html
[3] https://jang.com.pk/en/43049-blackstone-exits-bid-for-tiktok-us-equity-amid-trade-discussions-news
[4] https://finance.yahoo.com/news/blackstone-drops-group-seeking-stake-235213287.html