Blackstone Considers Investment in TikTok Amid Ownership Challenges

WASHINGTON, D.C. — Blackstone, a leading private equity firm, is reportedly contemplating a minority investment in TikTok‘s U.S. operations, as confirmed by two sources familiar with the situation. This decision comes in the wake of pressing concerns regarding Chinese ownership of the social media giant and the approaching deadline for divestiture set by U.S. lawmakers.

As detailed in a report by Reuters on March 28, Blackstone is considering joining other U.S. investors, including Susquehanna International Group and General Atlantic, to provide additional funding aimed at taking over TikTok’s American division. The consortium aims to reduce the Chinese stake in the company to below 20%, complying with U.S. regulations that restrict foreign ownership.

The future of TikTok has been in flux since Congress enacted a law last year, prompted by national security concerns, which demanded that its parent company, ByteDance, divest its interests or risk a ban in the U.S. Despite an initial divestiture deadline of January 19, 2025 — which passed without action — President Donald Trump granted ByteDance an extension, leading to a new deadline of April 5.

Vice President JD Vance expressed optimism that a deal could be finalized before the imminent deadline. Other potential bidders for TikTok’s U.S. operations include the AI search engine firm Perplexity, which is advocating for ownership to ensure independence from foreign influence over the platform’s algorithm.

In a statement on its blog, Perplexity emphasized, “Perplexity is dedicated to rebuilding the TikTok algorithm without creating a monopoly, ensuring content feeds are liberated from the manipulations of foreign governments and globalist monopolists.”

Research from PYMNTS Intelligence highlights TikTok’s significant role in shaping social commerce, with findings revealing that 20% of retail shoppers are influenced by the content they encounter on the platform and others. PYMNTS noted, “TikTok isn’t just a platform for showcasing boxed-in dance moves — it’s an economic force within the hermitage.”