Blackstone is weighing a minority investment in TikTok's U.S. operations as pressure mounts on ByteDance to reduce its Chinese ownership stake ahead of an April deadline, according to people familiar with the matter.
The private equity firm is in discussions to join existing non-Chinese shareholders in ByteDance, including Susquehanna International Group and General Atlantic, who are leading a bid to carve out TikTok's U.S. business into a standalone company. The proposal is structured to bring Chinese ownership of the new entity below the 20% threshold mandated by U.S. law.
The discussions follow a law enacted last year requiring ByteDance to divest TikTok by January 19 or face a ban in the United States over national security concerns. The U.S. Supreme Court upheld the ban earlier this year, briefly pushing the app offline before President Donald Trump postponed enforcement of the divestment until April 5. Trump has since signaled that he may extend the deadline further.
Blackstone declined to comment. TikTok, General Atlantic, and ByteDance also declined to provide statements. Susquehanna did not respond to inquiries.
The ongoing negotiations represent a pivotal moment for TikTok, an app used by nearly half of all Americans, as lawmakers and the Trump administration seek to separate its U.S. operations from Beijing's influence. Trump has linked progress on the TikTok deal to broader economic incentives, including the possibility of easing tariffs on China.
Vice President JD Vance said he expects the general terms of an agreement that resolves ownership of the app to be in place by the April deadline.
According to TikTok's legal filings, ByteDance is currently owned 58% by global institutional investors, 21% by Chinese founder Zhang Yiming, and 21% by employees-including about 7,000 Americans.
In January, Reuters reported that the Trump administration was coordinating a plan involving Oracle and select ByteDance investors to take over TikTok's U.S. operations. The White House has taken an unusually direct role in brokering a deal, effectively acting as a behind-the-scenes facilitator.
The Biden administration had previously threatened action against TikTok before leaving office, citing concerns over user data and content moderation. Trump's White House has carried that momentum forward, tightening timelines and taking a more active approach to the platform's restructuring.
ByteDance has yet to disclose how much new capital would be required to buy out its Chinese stakeholders.
