Private equity giant Blackstone (NYSE:BX) has withdrawn from a consortium bidding for TikTok’s U.S. operations, according to a Reuters source. The exit comes as ongoing delays and rising uncertainty cloud the future of TikTok’s American business, which has become a flashpoint in U.S.-China trade tensions.
The consortium, led by Susquehanna International Group and General Atlantic—both existing investors in TikTok parent ByteDance—was the frontrunner in a deal supported by the Trump administration. Under the proposed plan, U.S. investors would control 80% of the U.S. TikTok entity, with ByteDance retaining a minority stake.
Blackstone declined to comment, while TikTok has not yet responded to inquiries.
The deal’s timeline has been repeatedly pushed back. President Donald Trump recently signed a third executive order extending the deadline for ByteDance to divest its U.S. TikTok assets to September 17. A law passed in April 2024 requires a sale or shutdown of TikTok by January 19, 2025. Lawmakers have criticized the delays, citing national security concerns over Chinese ownership of the app.
ByteDance, which reportedly earned $43 billion in Q1 2025 and outpaced Meta (NASDAQ:META) in revenue, is weighing options including a sale or restructuring of its U.S. operations. The consortium is also reported to include KKR, Andreessen Horowitz, and Oracle (NYSE:ORCL), though it’s unclear if all parties remain involved.
Plans to spin off TikTok into a U.S.-based company were halted after China signaled opposition following Trump’s new tariffs. Despite the setbacks, TikTok is reportedly developing a separate U.S. version of the app.
Blackstone’s departure underscores the geopolitical and regulatory challenges complicating the TikTok deal, which Trump has linked directly to broader trade discussions with Chinese President Xi Jinping.