Blackstone Exits Consortium Planning to Invest in TikTok's US Business Amid Divestment Deadline

Blackstone has reportedly left a consortium planning to invest in TikTok's US business. The group, led by Susquehanna International Group and General Atlantic, aimed to separate TikTok's US operations from its Chinese parent company, with American investors controlling 80% of the US business. Blackstone had planned to acquire a minority share in the deal but declined to comment on its exit. Meanwhile, TikTok is preparing to launch a standalone US app, "M2," to address regulatory and data security concerns.

Private equity giant Blackstone has reportedly withdrawn from a consortium seeking to acquire a majority stake in TikTok's US operations, according to Reuters. The consortium, led by Susquehanna International Group and General Atlantic, aimed to secure an 80% stake in TikTok’s US operations, with ByteDance retaining a minority shareholding. The deal was part of broader U.S.-China trade talks and faced multiple delays due to regulatory uncertainties and political pressures [1].

Blackstone's exit from the consortium adds a layer of uncertainty to the potential deal. The consortium now consists of Susquehanna International Group, General Atlantic, and Oracle, with the latter expected to take a significant stake. The deal had been in the works this spring but was put on hold following China's disapproval of the transaction in response to Trump's tariffs on Chinese goods [1].

The potential sale of TikTok's US operations has been a contentious issue, with the US government mandating that ByteDance divest TikTok by January 19, 2025, and later extending the deadline to September 17, 2025. TikTok is preparing to launch a standalone US app, internally known as "M2," to address these regulatory and data security concerns. The new app is expected to operate on a separate algorithm and data system from the global version, impacting approximately 170 million US users [2].

Analysts project a moderate upside for Blackstone, with the consensus among 15 analysts presenting an average one-year price target for BlackRock Inc. (BLK) at $1,163.89, indicating a potential upside of 5.46% from its current stock price of $1,103.59. The consensus recommendation from 18 brokerage firms for BlackRock Inc. (BLK) is currently at 1.9, classifying it under the "Outperform" category [2].

The withdrawal of Blackstone from the consortium underscores the shifting dynamics in strategic investments, with ongoing negotiations and potential changes in the U.S.-China trade relationship continuing to impact the deal’s prospects.

References:
[1] Reuters. (2025, July 18). Blackstone's exit adds uncertainty to TikTok US deal. Retrieved from https://www.reuters.com/legal/transactional/blackstone-drops-out-consortium-bid-tiktok-us-source-says-2025-07-18/
[2] GuruFocus. (2025, July 18). BlackRock BLK withdraws from TikTok US acquisition consortium. Retrieved from https://www.gurufocus.com/news/2988958/blackrock-blk-withdraws-from-tiktok-us-acquisition-consortium