Asset manager Blackstone rescinded its bid to take a stake in TikTok’s US-based business. The company had aligned itself with a group of investors, including Susquehanna International Group, General Atlantic, KKR, Andreessen Horowitz, and Oracle, to invest in TikTok’s US operations, but has now exited the consortium.
The firm’s withdrawal, however, comes at a time when the TikTok US deal has become a key issue in trade talks between Washington and Beijing. Since discussions began, the deal, however, has been plagued by several delays.
Trump signals progress on TikTok deal as Xi meeting likely
Earlier this month, the US president, Donald Trump, stated that they “pretty much” had a deal to sell TikTok’s US operations.
When asked how confident he was that China would accept the deal, he told reporters: “I’m not confident, but I think so. President Xi and I have a great relationship, and I think it’s good for them. I think the deal is good for China, and it’s good for us.”
He even hinted that he and President Xi Jinping may meet soon. About a week ago, Secretary of State Marco Rubio confirmed that the chances of the two leaders meeting are very high. However, he offered no specifics about the possible meeting, merely noting that there was a strong mutual desire to meet.
Last month, President Trump pushed the deadline for ByteDance to sell TikTok’s US assets to September 17. It marked his third executive order postponing the ban, granting ByteDance an additional 90 days to secure a buyer or face a ban in the US.
That same month, he said he found a buyer that could ensure TikTok’s continued legal operation in the US. Later, Bloomberg News revealed that the buyers, including Blackstone, were in the same group. The group had become the leading contender to acquire TikTok’s US operations in a deal that would give American investors an 80% ownership stake, with ByteDance retaining a minority share.
The US and China are still negotiating for a better trade deal
Since Trump’s re-election, tensions between the US and China have resurfaced, with both countries engaging in a volatile tariff exchange rooted in the president’s global trade war and disputes over export control measures. As things stand, the two agreed to a 90-day tariff suspension, though the deadline is drawing close. Still, recent comments from US officials suggest the timeline remains flexible.
The two countries are still negotiating for a better trade deal, with the TikTok US deal at the center of talks. Nevertheless, Chinese authorities have vowed to respond if US trade agreements with other countries come at the cost of Chinese interests.
Rubio recently held a meeting with China’s Wang Yi in Kuala Lumpur, which both sides called positive and productive. He added that they were able to pinpoint potential areas for collaboration, but he did not specify what those areas were.
The Chinese Foreign Ministry gave a similar statement, describing the talks as “positive, pragmatic, and constructive,” noting that both nations agreed to boost diplomatic communication and coordination across various sectors.
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Source: https://www.cryptopolitan.com/blackstone-exits-bid-for-tiktok-us-stake/