Blackstone has withdrawn from a consortium led by Susquehanna and General Atlantic that was aiming to invest in TikTok's U.S. operations, following earlier plans to take a minority stake.

This consortium's proposal would have allowed U.S. investors to own up to 80% of TikTok, with ByteDance retaining a minority stake, but Blackstone's exit marks a shift in investment strategies amid ongoing regulatory scrutiny.

TikTok reported a revenue of $43 billion in Q1 2025, surpassing Meta, and is working on a U.S.-specific app to strengthen its presence in the American market.

ByteDance is exploring various options, including selling or restructuring TikTok’s U.S. operations, to address these security concerns amid ongoing negotiations and delays.

The sale process has been complicated by China's reluctance to approve the transaction and broader U.S.-China trade tensions, with discussions involving President Xi Jinping and former President Trump.

Lawmakers have criticized these delays, arguing they undermine national security and accuse the Trump administration of neglecting security issues related to Chinese control of TikTok.

The U.S. consortium included notable investors such as KKR, Andreessen Horowitz, and likely Oracle, although the status of other bidders remains uncertain.

The deal was initially orchestrated under former President Donald Trump, who faced criticism from lawmakers over national security concerns related to Chinese ownership of TikTok.

The deadline for ByteDance to divest TikTok's U.S. operations has been repeatedly extended, most recently to September 17, 2025, due to executive orders from the Trump administration.

In April 2024, Congress passed legislation requiring TikTok to be sold or shut down by January 19, 2025, intensifying pressure on ByteDance to divest its U.S. operations.

Blackstone's decision to withdraw from the consortium reflects a broader shift in investment strategies amid regulatory challenges and scrutiny over TikTok.