Private equity giant Blackstone is taking a small stake in Ticintok, which is determined by President Trump to change its ownership before the time limit of April 5 or face the US ban under the federal law, two people said the situation is familiar with the situation.
Investing in Tikokkok will give Blackstone a chance to bite one of the world’s most popular social media applications, with more than 170 million American users. It is not clear that any investment – which will probably be a fraction of the size of blackstone’s specific deals – will move forward, and other investors are also orbiting the app, which is owned by Chinese Internet’s giant bidens, four people are familiar with the talks.
If there is an investment, it can promote favor with President Trump, who has made it a mission to save Tikok from disappearing under the federal law. Last year, the Congress passed the law that forces the sale of the app due to national security concerns related to its Chinese ownership.
Mr. Trump extended the deadline for a deal in January, and suggested that he could do so again if there is no compromise next week. He also suggested this week that he could rest the upcoming tariff on China in exchange for the support of a deal in the country.
Blackstone’s talks combine the chaotic history of Tiktok in the United States. The video app has repeatedly been out of political efforts to close it in the country. In January, the app became dark for about 12 hours before returning to life in the United States.
A Blackstone spokesperson said the firm did not comment on the speculation of the deal. Neither Ticketkok or White House responded to the requests of the comment. Roots Reported earlier Blackstone interest.
As a approach of April 5, the discussion about potentially suits for the app has intensified. Mr. Trump has repeatedly contacted the parties who are pitching them ideas, and their interest in various arrangements can be fleeting, two other people call them close to the talks.
The most likely option is a deal in which existing American investors have rolled at their stake at a new independent global ticket company at their stakes, two people have been included in the conversations. Additional American investors such as Blackstone will be brought to reduce the ratio of Chinese investors.
Doing so will be a complete sale of Tikok, which will be prohibited for most buyers and may force the current bide investors to sell a valuable company under Dures, which is likely to disappoint the price. The law does not say more than 20 percent of Tiktok or its original company, which is owned by people or companies in so -called anti -foreign countries, including China.
In January, CNBC said, “We can talk to President Trump and his team, we are less about selling the company, which allows the company to operate, perhaps with any change in control, but lacks,” CNBC, one of the US investors of the biodens, spoke in January.
Blackstone, which manages more than $ 1 trillion, usually joins the megadals. It has investment in various businesses in the form of rover, an online market for pet care; Spanish, The Women Wear Brand; And Jersey Mike’s sandwich series.
He is headed by Stephen Schwarzman, a Republican Megadoner and Trump, head of the private equity firm, with sufficient commercial interests in China.
Today, the largest investors of the bidence include a global trading firm Sushekhana, which was about 15 percent of the Chinese company as last year, and General Atlantic, who first presented in the evaluation of $ 20 billion in 2017. Two people said that whatever the deal can be done, Sushekhana has played an important role in interacting on it, and is likely to increase its equity stake in Tikok as part of the new deal.
Oracle, which hosts some data of Tiktok, has also been involved in the talks, two people said. A company spokesperson did not immediately respond to the remarks request.
David Mckebe And Sapna Maheshwari Contribution reporting.
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