As the U.S. government’s deadline for ByteDance to divest TikTok’s American operations approaches, investment interest in the platform is intensifying. Blackstone, a major private equity firm, is reportedly evaluating a potential minority investment in TikTok’s U.S. business. This move may position Blackstone alongside existing non-Chinese shareholders such as Susquehanna International Group and General Atlantic, who are currently seen as leading contenders to acquire the U.S. segment of the platform. The strategy would involve spinning off TikTok U.S. into a separate entity, thereby reducing Chinese ownership to below 20% to comply with U.S. legal requirements.
Earlier reports had focused on various scenarios for TikTok’s U.S. future, including forced divestment or an outright ban. However, no definitive outcome had materialized by the original January 19 deadline. While ByteDance briefly ceased operations in the country, service was soon restored after former President Donald Trump indicated more time would be provided. The new deadline, April 5, now looms, with political figures such as Vice President JD Vance expressing optimism about a resolution. The emergence of new corporate players and investment groups signals ongoing attempts to satisfy regulatory concerns while maintaining TikTok’s presence in the U.S. market.
Why Is TikTok’s Future in the U.S. at Stake?
The U.S. Congress passed legislation requiring ByteDance to divest TikTok’s American operations due to national security concerns involving data privacy and foreign influence. To meet these conditions, the proposed restructuring would create a U.S.-based company with minimal Chinese involvement. If executed, this plan could prevent a nationwide ban and allow TikTok to continue operating under new ownership aligned with U.S. legal frameworks.
Who Else Is Competing for TikTok’s U.S. Business?
In addition to the investor consortium supported by Blackstone, the AI-focused company Perplexity has positioned itself as a potential buyer. The firm recently presented its case for acquiring TikTok, emphasizing its technical capabilities and independence from large tech monopolies.
“Perplexity is singularly positioned to rebuild the TikTok algorithm without creating a monopoly,”
the company stated on its blog. It also cautioned that if the platform is acquired by a competitive tech giant or a consortium with ties to ByteDance, concerns about monopolistic behavior or continued foreign influence could persist.
TikTok’s influence in the digital marketplace has extended beyond entertainment into social commerce. Research shows that 20% of retail shoppers are influenced by content on TikTok and similar platforms. This statistic underscores the app’s growing economic relevance, especially as consumer behavior increasingly pivots toward online influence.
“When you rarely leave the house, whoever’s showing up on your phone will have a lot of sway,”
PYMNTS noted in a previous analysis.
ByteDance’s decision to either accept external investment or pursue a full divestiture remains uncertain with only days until the new deadline. Meanwhile, the Biden and Trump administrations’ differing stances on the matter have added complexity to the situation. Whether the U.S. spinoff will be led by existing stakeholders or a new entrant like Perplexity may depend on regulatory approval and the ability to satisfy national security concerns.
As TikTok navigates a politically charged and commercially significant transition, the involvement of firms like Blackstone and Perplexity indicates a wider recognition of the platform’s economic potential. Investors must also consider the implications of algorithm control, user data handling, and platform governance under new ownership structures. For users and regulators alike, the outcome could influence global standards on how foreign-owned digital platforms operate in sensitive national markets. Those following the case should monitor not only ownership shifts but also legislative developments and stakeholder statements as critical deadlines approach.
