Blackstone Inc (NYSE:BX) has reportedly left a group preparing to invest in TikTok’s US operations, according to Reuters.
The consortium, led by Susquehanna International Group and General Atlantic, intended to separate TikTok’s US business from its Chinese parent company, ByteDance, with American investors controlling 80% of the US operations and ByteDance retaining a minority stake.
Private equity firm Blackstone had planned to acquire a minority share in the deal, sources told Reuters.
TikTok is being forced to sell its American assets or face a ban in the US, driven by national security concerns over potential Chinese government access to US user data and influence.
The Trump administration has extended the deadline for ByteDance to divest or shut down TikTok’s US business multiple times, now set for mid-September.
Blackstone declined to comment on its reported exit from the group.
Meanwhile, Reuters also reported that TikTok is preparing to launch a standalone US app that will operate on a completely separate algorithm and data system from its global version.
This US-specific app, internally called "M2," is aimed at addressing US regulatory and data security concerns by isolating American user data and recommendations from the rest of the world.
The app is expected to be ready ahead of the September divestment deadline, Reuters said.