Blackstone is exploring a potential minority investment in TikTok’s US business as part of an effort led by existing non-Chinese shareholders of parent company ByteDance to restructure the social media platform, according to a report by Reuters citing sources familiar with the matter.
The private equity firm is in discussions to join a consortium of ByteDance’s current non-Chinese investors, including Susquehanna International Group and General Atlantic, in providing fresh capital for a bid to acquire TikTok’s US operations. This investor group has emerged as the frontrunner in negotiations.
The proposal under consideration involves spinning off TikTok’s US business into a separate entity, reducing Chinese ownership to below the 20% threshold mandated by US law.
The future of TikTok, which is used by nearly half of all Americans, remains uncertain following the passage of a law last year requiring ByteDance to divest the platform by 19 January or face a ban on national security grounds. The app was temporarily shut down in the US in January after the Supreme Court upheld the ban but was reinstated after President Donald Trump postponed enforcement until 5 April.
Trump has indicated he may extend the deadline further and has suggested a potential reduction in tariffs on China as part of negotiations. Vice President JD Vance has expressed confidence that an agreement resolving TikTok’s ownership structure will be reached by the April deadline.
It remains unclear how much additional capital will be required to facilitate the buyout of ByteDance’s Chinese shareholders and bring the deal in line with US regulatory requirements.
According to previous legal filings, ByteDance’s ownership structure comprises approximately 58% global investors, 21% held by founder Zhang Yiming, and the remaining 21% by employees, including around 7,000 US-based staff.
The White House has taken an active role in overseeing the deal, engaging at an unprecedented level in discussions typically reserved for investment banks.
Reports in January indicated that the Trump administration was working on a broader restructuring plan for TikTok, which could involve Oracle and existing ByteDance investors assuming control of the platform’s US operations.
