Blackstone is evaluating a small minority investment in TikTok’s U.S. operations, sources familiar with the matter tell Reuters. The private equity firm is discussing joining ByteDance’s existing non-Chinese shareholders in contributing fresh capital to bid for TikTok’s American business.

The group of investors, led by Susquehanna International Group and General Atlantic, has emerged as a primary contender in the process. Their proposal involves spinning off TikTok’s U.S. operations into a separate entity and reducing Chinese ownership in the new business to below the 20% threshold required by U.S. law.

Regulatory Deadline Approaches

The app, used by approximately 170 million Americans, faces an uncertain future following legislation passed last year with bipartisan support. The law requires ByteDance to divest TikTok or face a ban on national security grounds.

TikTok temporarily went offline in the U.S. in January after the Supreme Court upheld the ban, but service resumed when President Donald Trump postponed enforcement to April 5. Trump indicates he may extend this deadline further and has suggested a possible reduction in China tariffs to facilitate a deal.

Ownership Structure Under Scrutiny

According to TikTok’s legal filings, global investors currently own approximately 58% of ByteDance, while Chinese founder Zhang Yiming – recently declared China’s richest man – holds 21%. The remaining 21% belongs to employees of various nationalities, including about 7,000 Americans.

Reuters notes that the White House maintains involvement in the negotiations, functioning as an investment bank in the closely watched deal talks.