Exclusive: Blackstone drops out of consortium bid for TikTok US

Private equity giant Blackstone has withdrawn from a consortium seeking to invest in TikTok’s U.S. operations, a source familiar with the matter has told Reuters.

The latest change came as uncertainty has mounted and there have been several delays in the TikTok deal now at the center of U.S.-China trade talks.

Blackstone had planned to take a minority stake in the TikTok U.S. business in a deal orchestrated by President Donald Trump. The consortium is led by Susquehanna International Group and General Atlantic, current investors in TikTok's Chinese owner ByteDance.

The group had emerged as the front runner  to secure TikTok’s U.S. business in a deal under which U.S. investors would own 80% of TikTok, while ByteDance would retain a minority stake.

If a sale is finalized, the new U.S. app is expected to be owned by a joint venture formed by an American investor consortium and ByteDance, which would maintain a minority stake. TikTok is already working on a U.S.-specific app.

 Blackstone’s exit highlights the complexities and uncertainties involved in the deal, as the ongoing talks over TikTok’s fate have now become part of Trump’s broader trade negotiations with China, and Trump said he would speak to President Xi Jinping about it.

Source: Reuters