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Financial Times: The White House is close to approving the TikTok US deal, with new investors including a16z and Blackstone Group

ChainCatcher news, according to the Financial Times, based on the terms of the deal, several informed sources revealed that a group of new external investors, including a16z, Blackstone Group, Silver Lake Partners, and other large private equity firms, will own about half of TikTok's U.S. business. These sources indicated that the U.S. business will be spun off from its parent company, ByteDance, based in Beijing.TikTok's existing major investors, including General Atlantic, Susquehanna, KKR, and Coatue, will also hold about 30% of the U.S. business.According to individuals involved in the process, these plans are still in the preliminary stages and may change. This was formulated ahead of the U.S. legal deadline on April 5, which requires that unless the Beijing owners sell to a non-Chinese entity, the app will be banned in the U.S.Officials from President Trump’s administration are scheduled to meet on Wednesday to discuss the negotiation status, with several individuals stating that if the president gives approval, the deal could be announced soon. A White House spokesperson stated, "If there is a statement regarding TikTok, it will be made by President Trump."One individual warned that the situation remains unstable, and the White House could still abruptly change plans. According to the terms of the deal, ByteDance will retain less than 20% of the business shares to comply with U.S. legislation, which stipulates that "foreign adversaries" cannot control more than one-fifth of the shares. Informed sources added that the plan will still require several months of further due diligence, structural adjustments, and other corporate financing commitments, which is typical in acquisition transactions, and the structure may change, with some equity supporters potentially increasing or decreasing their proposed investments. One individual stated that these groups will have three to four months to complete the divestiture process.
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