Private equity heavyweight Blackstone has exited a consortium bidding for TikTok’s U.S. operations, a source familiar with the matter told Reuters on Friday.
The decision comes amid mounting delays and intensifying uncertainty surrounding the deal, which has become a flashpoint in U.S.-China trade negotiations.
Blackstone was initially set to take a minority stake in TikTok’s U.S. business as part of a deal championed by President Donald Trump. The consortium, fronted by Susquehanna International Group and General Atlantic—both current investors in TikTok’s parent company ByteDance—had emerged as the leading candidate to acquire the U.S. business. Under the proposed deal, American investors would hold 80% of the new entity, with ByteDance retaining a minority interest.
Blackstone declined to comment, and TikTok did not immediately respond to a request for comment.
The deadline for ByteDance to divest TikTok’s U.S. arm has been repeatedly pushed back, frustrating potential investors. Last month, Trump issued a third executive order delaying the deadline to September 17. A law passed by Congress in April 2024 requires TikTok to be sold or shut down in the U.S. by January 19, 2025.
These delays have sparked criticism from lawmakers who claim the Trump administration is “flouting the law” and ignoring national security risks tied to Chinese ownership.
ByteDance is evaluating several strategies, including selling or restructuring its U.S. operations. The company, which brought in $43 billion in revenue during the first quarter of 2025, recently overtook Meta in quarterly earnings, sources told Reuters.
The U.S.-backed group favored by the Trump administration also includes firms such as KKR and new investors like Andreessen Horowitz, as previously reported by Reuters. Oracle is expected to take a stake as well, though it’s unclear which bidders remain involved following Blackstone’s exit.
Negotiations to spin off TikTok’s U.S. business into a separate American company were underway this spring, but talks stalled when China signaled it would block the transaction after Trump imposed new tariffs on Chinese goods.
If a deal does go through, the restructured U.S. version of TikTok would be owned by a joint venture between American investors and ByteDance, which would keep a minority stake. TikTok is already developing a U.S.-specific version of its app, according to sources.
Blackstone’s withdrawal underscores the challenges and fluid dynamics of the deal, which has increasingly become entangled in broader trade negotiations. Trump recently said he plans to discuss TikTok directly with Chinese President Xi Jinping.
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