Private equity firm Blackstone has withdrawn from the consortium seeking to invest in TikTok‘s U.S. operations, a source familiar with the matter told Reuters, adding new complications to the already protracted divestiture process.

The consortium, which previously included Blackstone alongside Susquehanna International Group and General Atlantic, remains led by current ByteDance investors. The group had emerged as the front-runner to secure TikTok’s U.S. business in a structure where U.S. investors would own 80% of the operation while ByteDance retains a minority stake.

Oracle Corp and venture capital firm Andreessen Horowitz continue as part of the investor group, with KKR also reportedly involved. The consortium’s composition has changed from earlier reports that suggested new outside investors would hold a 50% stake, with ByteDance’s existing American investors maintaining approximately 30%.

U.S. President Trump recently signed a third executive order extending the divestiture deadline to September 17. This follows Congressional legislation passed in April 2024 mandating a sale or shutdown by January 19, 2025. The deadline extensions have drawn criticism from lawmakers who argue the administration is “flouting the law” and ignoring national security concerns related to Chinese control of the platform.

U.S.-Specific App Development

TikTok is actively developing a standalone U.S. version of its app, according to multiple sources. This U.S.-specific version is reportedly slated to launch in American app stores by September 5, with the current version potentially being phased out by March 2026, pending the completion of a sale.

The move represents TikTok’s strategy to preserve its 170 million U.S. users while addressing regulatory requirements.

Trade Negotiations Factor

The ongoing talks over TikTok’s fate have become intertwined with broader U.S.-China trade negotiations. Trump has indicated that completion of any deal remains contingent on approval from the Chinese government, stating he believes “President Xi will probably do it.”

White House Press Secretary Karoline Leavitt confirmed that discussions continue “at the highest level” with China, noting the administration extended the deadline to “continue to work out this deal.”

As Reuters notes, ByteDance, which reportedly generated $43 billion in revenue during the first quarter of 2025, continues to explore various options while negotiations proceed.

Checkout Our Latest Podcast