Private investment firms including Susquehanna International Group, General Atlantic and KKR – all existing investors in TikTok owner ByteDance – are playing a pivotal role in ongoing discussions surrounding the future of the short video platform’s US operation, according to a report by Reuters.
Under the terms of a plan currently under negotiation the investors could increase their stakes and spin off TikTok’s US business while diluting Chinese ownership to comply with US law, which mandates that foreign entities hold less than a 20% stake in US-based businesses with national security concerns.
With representation on ByteDance’s board, Susquehanna and General Atlantic have emerged as the primary players in the talks, which are being coordinated with the White House.
The White House’s intervention, which has transformed it into an unofficial investment bank in these talks, reflects the geopolitical importance of the deal. In January, a new law came into effect, giving ByteDance a deadline to either sell TikTok’s US operations or face a national security ban.
The move is part of broader concerns in Washington over the app’s potential links to the Chinese government and its influence on US users. In response, ByteDance has maintained that its US operations are independent, with user data stored on Oracle’s servers and content moderation decisions made within the US.
The proposed deal would see US investors taking a stronger position in the company while Oracle, which already manages TikTok’s data infrastructure, would continue to ensure the app’s data remains inaccessible from China. This arrangement would likely address US regulators’ concerns regarding national security while keeping TikTok’s operations intact.
In addition to Susquehanna, General Atlantic, and KKR, other private equity players, such as Coatue, are also involved in the discussions. Coatue, a prominent technology investor, is among the firms reportedly looking to secure a deal for TikTok’s US operations, according to sources familiar with the matter.
The deal could see significant private equity capital deployed to facilitate the acquisition, with a focus on maintaining the app’s value and long-term viability in the US market.
