Blackstone bails on TikTok buyout, can it still be bought?
Image credit: Berke Citak
Once again TikTok’s US buyout is in question after yet another delay from Trump, so can it make the deadline of September 17th?
Last month, Trump suggested that a group of “very wealthy” Americans were set to make a deal on purchasing TikTok‘s U.S. operations. One of the deal’s most significant backers, private equity firm Blackstone, has now reportedly pulled out according to a source close to the matter, putting the deal into question.
The consortium is reported to be led by Susquehanna International Group and General Atlantic, both of which are already invested in TikTok’s parent company Bytedance. It’s then suggested that KKR, Andreessen Horowitz, and Oracle are involved as potential investors in the group.
Following an executive order by Congress that says TikTok must sell its US business from Chinese management, Trump has delayed their deadline three times. Despite Trump’s support in both a sale and a lack of need for immediacy, ByteDance still don’t seem that keen on selling.
Shortly after Trump’s most recent extension of TikTok’s deadline, the platform stated: “We are grateful for President Trump’s leadership and support in ensuring that TikTok continues to be available for more than 170 million American users.” That doesn’t sound much like an admission of imminent sale.
Throughout the process of Congress’s demand that TikTok sell its U.S. operations or exit the company, Trump has been pushing buyers forward. At one time, he suggested that Elon Musk would make a good buyer – a suggestion Musk denied, even when their relationship was still intact.
Reports earlier this month suggested that a new TikTop app would launch, providing control over security and data by any new U.S. investors. It was suggested that the app would launch for September 5th, ahead of the September 17th deadline, suggesting that a deal was taking place and would be finalised before the deadline date.
However, with the only news since being rumours that Blackstone are pulling out of a deal that is not yet confirmed, it’s not looking good. ByteDance are yet to publicly announce any support of a deal or sale in the face of their potential ban from operating TikTok in the U.S..