Blackstone's Bid to Reshape TikTok's U.S. Operations

Blackstone is considering a minority stake in TikTok's U.S. operations, aligning with ByteDance's non-Chinese shareholders. Legal requirements necessitate a reduction in Chinese ownership. TikTok faces a potential U.S. ban unless ownership changes by April. Efforts to resolve ownership and avoid a ban are ongoing.

Private equity giant Blackstone is eyeing a minority investment in TikTok's U.S. operations. This move would place them alongside other non-Chinese stakeholders of ByteDance, the app's parent company. The goal is to spin off TikTok's American division, aligning with legal mandates to diminish Chinese ownership.

The company declined to comment, along with key players TikTok and General Atlantic. Susquehanna also did not respond. TikTok's U.S. presence has been unstable since a bipartisan law demanded divestment by ByteDance due to national security concerns.

Following a brief January shutdown and subsequent reopening, the deadline for divestment has been extended to April. As negotiations continue, Vice President JD Vance expresses confidence in reaching a resolution on TikTok's ownership before the stipulated date.

(With inputs from agencies.)