Private equity giant Blackstone is evaluating Tiktok’s potential as the April 5 deadline set by President Trump for Chinese-owned apps approaches, which could result in US bans under federal law.
Investing in Tiktok would give Blackstone the chance to acquire one of the world’s most popular social media platforms, with over 170 million American users. It remains uncertain whether the investments, likely to be part of Blackstone’s typical portfolio, will proceed, as other investors are also considering apps owned by China’s Internet giant integration.
Should the investment go through, it could sway President Trump’s favor. Congress passed a law last year mandating the sale of the app due to national security concerns related to Chinese ownership.
Trump extended the deadline for the deal in January and hinted at a possible extension if an agreement is not reached next week. He also suggested easing tariffs on China in exchange for support for the deal.
Blackstone’s interest adds to Tiktok’s tumultuous history in the United States. The video app has faced political pressure to shut down domestically multiple times. In January, the app was temporarily disabled in the US for about 12 hours before coming back online. A Blackstone spokesperson declined to comment on the speculation. Both Tiktok and the White House did not respond to requests for comments. Reuters previously reported on Blackstone’s interest.
As the April 5th deadline approaches, discussions about potential suitors for Tiktok have escalated. Trump has been approached by various parties pitching their ideas, with his interest in different arrangements potentially changing quickly, according to sources close to the discussions.
The most probable scenario is a deal where current US investors in ByteDance transition their stakes into a new independent, global Tiktok company, with additional US investors like Blackstone brought in to reduce Chinese ownership. This setup would allow Tiktok to continue operating without a complete sale, as mandated by law.
“There are multiple options that we can discuss with President Trump and his team that would allow the company to keep operating. There may be some changes in control, but it doesn’t necessarily mean a full sale,” a source said.
Blackstone, a firm managing over $1 trillion, typically engages in large-scale deals and invests in a diverse range of companies like Rover, Spanx, and Jersey Mike’s.
Private equity firm chief Stephen Schwartzman has ties to China as a Republican mega-donor and Trump supporter, which could bring significant business advantages.
Current top investors in ByteDance include Susquehanna and Atlantic General, who are likely to increase their interest in Tiktok’s shares as part of any new deal. Oracle, which hosts Tiktok’s data, is also involved in consultations, according to sources.
Reported by David McCabe and Sapna Maheshwari.
Source: www.nytimes.com
