Private equity firm Blackstone has withdrawn from a deal to invest in social media platform TikTok’s U.S. operations, as part of a consortium. The company had planned to acquire a minority stake in a deal orchestrated by President Donald Trump. The consortium is led by Susquehanna International Group and General Atlantic, current investors in TikTok’s Chinese owner ByteDance.
The group had emerged as the frontrunner to take over TikTok’s U.S business, in a deal under which U.S. investors would own 80% of TikTok, while ByteDance would retain a minority stake.
According to Reuters, the U.S. consortium, favored by the administration in the TikTok deal, also includes KKR, as well as new investors such as Andreessen Horowitz. Oracle might also acquire a stake.
READ: TikTok builds new version of app ahead of expected sale (July 8, 2025)
If this deal comes through, it would finally end a period of drawn out uncertainty over the fate of the app. The U.S. Supreme Court had upheld the “sell-or-ban” law back in January, when the platform went dark on Jan. 19 for the American users, but was restored within 24 hours.
President Trump, who took office earlier this year, signed an executive order which gave the app an initial 75 days to find a buyer by April 5. Trump extended the deadline for another 75 days in April, and yet another extension was granted recently. These extensions have drawn criticism from some lawmakers, who argue the Trump administration is flouting the law and ignoring national security concerns related to Chinese control over TikTok.
A deal was nearly finalized in April, however that got stalled due to the additional tariffs imposed on China.
Previous reports disclosed that TikTok was building a new version of its app for its U.S. customers. This app is set to be launched on Sept. 5, and the existing app would stop working by March 2026, though the timeline could shift.
READ: Trump mentions potential TikTok sale to ‘a group of wealthy people’ (June 30, 2025)
Trump has previously said he would be open to TikTok being sold to cloud computing giant Oracle, whose co-founder Larry Ellison is a long-time ally of Trump’s. Billionaire Frank McCourt, Canadian businessman Kevin O’Leary, and Reddit co-founder Alexis Ohanian are part of another team bidding for the platform. YouTuber Jimmy Donaldson, also known as Mr. Beast, had also expressed an interest in buying TikTok as part of a different investor group.
Trump finally revealed that a buyer had been found for the app. He also added that China’s approval would be required for the deal, and that he thinks “President Xi [Jinping] will probably do it.” He had mentioned this while discussing the possibility of another pause on his “reciprocal” tariffs.
Analysts have previously estimated the U.S. operations of TikTok to be worth anywhere between $20 billion and $50 billion.