Blackstone Withdraws Bid for TikTok US Stake Amid Trade Talks

Blackstone, a prominent asset manager, has withdrawn its bid to acquire a stake in TikTok’s US operations. The firm had been part of a consortium that included Susquehanna International Group, General Atlantic, KKR, Andreessen Horowitz, and Oracle, aiming to invest in the social media platform's US-based business. This move leaves the remaining investors to potentially take a larger stake in TikTok's US operations.

The withdrawal comes at a critical time as the TikTok US deal has become a pivotal issue in trade talks between Washington and Beijing. The negotiations have been fraught with delays and uncertainties, with the US government setting a deadline for ByteDance, TikTok's parent company, to sell its US assets by September 17. Failure to secure a deal by this date could result in a ban on TikTok's operations in the US.

Earlier this month, the US president, Donald Trump, indicated progress in the TikTok deal, stating that a potential agreement was close to being finalized. However, Blackstone's exit from the consortium adds another layer of complexity to the negotiations. The US and China are still engaged in trade talks, with the TikTok deal being a central issue. The two countries have agreed to a 90-day tariff suspension, but the deadline is approaching, and the timeline for a resolution remains uncertain.

The consortium, which initially included Blackstone, had been the leading contender to acquire TikTok's US operations. The deal would have given American investors an 80% ownership stake, with ByteDance retaining a minority share. However, with Blackstone's exit, the consortium's dynamics have shifted, and the future of the deal remains uncertain.

Blackstone's withdrawal is a significant development in the ongoing negotiations over TikTok's future in the US. The consortium's remaining investors will now need to navigate the complexities of the deal without Blackstone's involvement. The US and China continue to engage in trade talks, with the TikTok deal being a key issue. The outcome of these negotiations will have significant implications for the future of TikTok's operations in the US and the broader trade relationship between the two countries.