Blackstone Eyes Strategic Investment in TikTok's U.S. Operations

Private equity firm Blackstone is considering a minority investment in TikTok's U.S. operations. The plan involves separating TikTok USA from ByteDance, reducing Chinese ownership below 20%. Legal requirements may force ByteDance to divest TikTok by April to avoid a ban on national security grounds.

Blackstone, a prominent private equity firm, is assessing the possibility of a minority investment in TikTok's American operations, as revealed by sources privy to ongoing discussions. Discussions involve joining non-Chinese stakeholders such as Susquehanna International Group and General Atlantic to infuse fresh capital into TikTok USA.

The strategic plan proposes creating an independent entity to manage TikTok USA, aiming to reduce Chinese ownership below the U.S.-mandated 20% cap. Although TikTok, General Atlantic, and Blackstone have chosen not to comment, the legal framework necessitates ByteDance's divestiture by April 5 to comply with U.S. regulations.

The U.S. government's involvement mirrors the tactics of an investment bank, indicating the significance of this deal. The resolution process might entail partnerships with entities like Oracle and existing ByteDance investors, highlighting TikTok's critical role in the ongoing trade negotiations between the U.S. and China.

(With inputs from agencies.)