Private equity giant Blackstone Inc. (NYSE:BX) has reportedly withdrawn from a high-profile investor group vying for TikTok's U.S. operations.
Check out the current price of BX stock here.
What Happened: Blackstone exited a consortium led by Susquehanna International Group and General Atlantic, both existing investors in ByteDance, TikTok's Chinese parent company, reported Reuters, citing people familiar with the matter.
The group had emerged as the frontrunner to acquire TikTok's U.S. business under a plan backed by President Donald Trump.
The Chinese social media giant, which generated $43 billion in revenue during the first quarter of this year, has recently overtaken Meta in quarterly earnings, the report added, citing sources.
Why It’s Important: The deal, which would have granted U.S. investors an 80% stake in a new American TikTok entity, was intended to satisfy a U.S. law passed in April 2024 that mandates ByteDance either divest TikTok or face a nationwide ban by Jan. 19, 2025.
However, progress has stalled amid repeated deadline extensions and pushback from Beijing.
In June, Trump issued a third executive order extending the divestment deadline to Sept. 17. Chinese regulators have reportedly objected to the proposed spin-off, especially following Trump's announcement of sweeping new tariffs on Chinese imports.
The deal's unraveling could jeopardize the future of TikTok in the U.S., a market where it boasts over 150 million users. With Trump expected to raise the issue directly with Chinese President Xi Jinping, the platform's fate may hinge on diplomacy as much as regulation.
Price Action: On Friday, shares of Blackstone dipped 2.19% during regular trading but edged up 0.17% in after-hours trading, according to Benzinga Pro data.
Benzinga's Edge Stock Rankings indicate that BX maintains steady upward momentum across short, medium and long-term timeframes. Although it performs well on momentum, its growth rating remains comparatively weaker. More detailed performance metrics can be found here.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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