Exclusive-Blackstone mulls small stake in US TikTok spinoff, sources say

Written by Dawn Chmiegewski, Katie Paul and Kane Wu

(Reuters) -Blackston’s stock company evaluates the investment of a small minority in the American Tijook operations, according to two people familiar with this issue.

BlackStone discusses joining the Chinese parent company bytedance, non -Sheikh, led by Susquehanna International Group and General Atlantic, to contribute to the new capital to provide bids to the American Tiktok company. The group has emerged as confusion in the foreground.

Their proposal requires the yarn of US Tiktok operations in a separate entity and reduce Chinese ownership in new business to less than the 20 % threshold required by American law.

Tikhak, General Atlantic, and Blackstone refused to comment. Susquehanna did not respond to the request for a comment.

The fate of the application, which was used by nearly half of the Americans in the air since a law, was passed last year with the support of the overwhelming parties, required to get rid of Tiktok by January 19 or a ban on national security land.

Tijook briefly appeared in the United States in January after the Supreme Court supported the ban, but returned to life days after US president Donald Trump took office and postponed law enforcement until April 5.

Trump said this deadline may extend further and interfere with a possible decrease in the definitions of China to try to complete a deal. US Vice President JD Vance said he expected to reach the general conditions of the agreement that resolves the application of the application by the deadline in April.

Bytedance and its investors did not reveal the amount of the new investment necessary to buy Chinese shareholders and meet the requirements of American law.

According to the legal deposits of Tiktok last year, global investors have about 58 % of bytedance, while the Chinese company’s founder Zhang Yiming owns 21 % of employees of different nationalities – including about 7,000 Americans – the remaining 21 %.

The White House participated in an unprecedented level in the talks that were closely monitored, as it actively plays the role of the investment bank.

Reuters and others reported in January that the Trump administration was working on a Tactok plan that would include the exploitation of Oracle and some current investors to control application operations.

(I participated in the Dawn Chmiegewski reports in Los Angeles, with additional reports from Katie Paul and Crystal Ho in New York and Ken Wu in Hong Kong; edited by Kenneth Lee and Margareta Choi)