Blackstone’s Bold Move: Will TikTok’s US Fate Be Sealed Soon?

Minority Stake in TikTok’s US Spinoff Hangs in the Balance

Private equity giant Blackstone is reportedly weighing a strategic minority investment in TikTok’s US operations, a move that could reshape the future of the wildly popular social media platform in America, according to sources familiar with the matter. This potential deal emerges amid intense scrutiny and a looming deadline tied to national security concerns, thrusting Blackstone into a high stakes bidding war alongside prominent investors like Susquehanna International Group and General Atlantic. These firms, already shareholders in TikTok’s Chinese parent company ByteDance, are spearheading efforts to secure TikTok’s US business by injecting fresh capital and spinning it off into a standalone entity. The goal? Dilute Chinese ownership to below the critical 20% threshold mandated by US law, ensuring compliance while keeping the app alive for nearly half of all Americans who use it daily. TikTok, General Atlantic, and Blackstone have stayed tight lipped, declining to comment, while Susquehanna has not responded to inquiries, leaving the financial world buzzing with speculation about what happens next.

The backstory here is as dramatic as it is complex. Last year, the US government passed a landmark law with overwhelming bipartisan support, forcing ByteDance to divest TikTok’s US operations by January 19, 2025, or face a nationwide ban over fears that the Chinese government could access American user data or manipulate content. The app briefly went offline in the US in January after the Supreme Court upheld the ban, only to roar back to life days later when President Donald Trump took office and pushed enforcement to April 5, 2025. Trump, known for his deal making flair, has hinted at extending this deadline further and even floated reducing tariffs on China to grease the wheels of a resolution. Vice President JD Vance has echoed this optimism, suggesting a deal addressing TikTok’s ownership could be finalized by April, a timeline that’s now just days away as the clock ticks relentlessly. The White House, in an unprecedented twist, has stepped in to play a quasi investment banker role, guiding the talks with a level of involvement rarely seen in such corporate maneuvers. Meanwhile, ByteDance and its investors remain coy about the exact amount of capital needed to buy out Chinese shareholders and satisfy US regulators, leaving analysts to piece together the puzzle.

Blackstone’s potential entry into this saga isn’t just a footnote, it’s a game changer. Known for its savvy investments in alternative assets, the firm is eyeing a small but significant stake in a deal that could value TikTok’s US operations well north of $100 billion, especially if its prized algorithm stays intact. This valuation isn’t just a number, it’s a testament to TikTok’s cultural and economic clout, making it a juicy target for investors willing to navigate the political minefield. Interestingly, Blackstone’s stock (BX) took a 4.42% hit on March 28, 2025, the day this news broke, hinting at market jitters over the risks tied to this politically charged venture. For context, the stock closed at $152.08 just days earlier on March 24, per historical data, though real time figures from March 28 remain elusive without live market access. This dip could signal investor unease about Blackstone diving into a deal fraught with regulatory hurdles and geopolitical tension, or it might simply reflect broader market dynamics, either way, it’s a detail worth watching.

The bidding group’s plan hinges on a clever workaround: create a new US based entity for TikTok and slash Chinese ownership below 20%. This isn’t just a financial shuffle, it’s a direct response to the US law’s core demand to sever ties with ByteDance’s Chinese roots. Legal filings from TikTok last year shed light on ByteDance’s ownership: global investors hold about 58%, founder Zhang Yiming owns 21%, and employees of various nationalities, including roughly 7,000 Americans, control the remaining 21%. Diluting that 20% plus Chinese stake means a hefty buyout, likely requiring billions in fresh capital from players like Blackstone, Susquehanna, and General Atlantic. These firms aren’t newbies, Susquehanna, a Philly based trading powerhouse, was an early ByteDance backer and could pocket $15 billion if this deal flies, while General Atlantic brings its own private equity muscle to the table. Together, they’re front runners in a race that’s as much about geopolitics as it is about profit.

But it’s not all smooth sailing. ByteDance has historically resisted selling TikTok, especially its algorithm, which China’s government deems a national asset too valuable to let go. Reports suggest Beijing’s firm stance could scuttle any deal involving the tech, forcing bidders to either settle for a stripped down version of TikTok or find a workaround that satisfies both US and Chinese regulators, a tall order by any measure. Add to that the White House’s heavy hand, and you’ve got a negotiation unlike any other. Earlier whispers tied Oracle to a Trump backed plan to take control alongside ByteDance investors, but Blackstone’s name now steals the spotlight, raising questions about how the final lineup will shake out. With the April 5 deadline looming, the pressure is on, and every move counts.

To break this down further, here’s a look at the key players in this TikTok US spinoff saga:

Entity	Role	Background
Blackstone	Potential minority investor	Private equity firm, manages alternative assets, stock symbol BX, down 4.42% on March 28, 2025
Susquehanna International Group	Lead bidder, existing ByteDance shareholder	Global trading firm, early ByteDance investor, holds significant stake
General Atlantic	Lead bidder, existing ByteDance shareholder	Private equity firm, focuses on growth equity, part of non-Chinese shareholders

What’s next? The days ahead will tell whether Blackstone commits or walks away, and whether this group can seal the deal before TikTok’s US fate hangs in the balance yet again. Trump’s willingness to tweak deadlines and tariffs adds a wild card, while ByteDance’s stance, China’s red lines, and the White House’s oversight keep everyone guessing. For now, the financial world watches, the app’s 170 million US users wait, and Blackstone stands at a crossroads, poised to either ride TikTok’s wave or step back from one of the decade’s most watched deals. This isn’t just about money, it’s about power, influence, and the future of a platform that’s redefined how we connect. Stay tuned, because this story’s far from over.

Key Citations

• Exclusive-Blackstone mulls small stake in US TikTok spinoff, sources say
• US Senate passes TikTok divestment-or-ban bill, Biden set to make it law
• Where things stand with TikTok less than a month before its next sale deadline
• TikTok divestment bill would give government stronger legal position, US DOJ says
• 'Unusual White House Involvement' in US Bid to Buy TikTok
• Biden has passed a potential TikTok ban into law. Here's what that means and what to expect
• Susquehanna: How a wealthy Philly trading firm got into TikTok early and could make $15 billion
• Who could buy TikTok? Only a few parties are serious about offering
• TikTok starts restoring service in the U.S. after shutting down over divest-or-ban law
• TikTok Can Still Save Itself - Here's How
• Blackstone - 18 Year Stock Price History