Microsoft may seek the help of Blackstone, a large private equity fund, to buy The Chinese social network TikTok,media reported. Blackstone is understood to manage more than $600 billion in assets. Microsoft initially said it only wanted to buy TikTok’s U.S. business, reportedly worth about $5 billion, but later expanded the acquisition to Its global operations, said to be worth $30 billion to $50 billion.
Microsoft is reportedly in talks with current investors such as General Atlantic Partners and Sequoia Capital to arrange the deal, with some reports suggesting that General Atlantic Partners and Sequoia Capital will remain partners in the new company.
Blackstone was also reported to have been enthusiastic at first, but that interest has begun to wane as the Trump administration has stepped up pressure on ByteDance and Microsoft. Microsoft is also clearly willing to abandon the deal if it attracts too much government scrutiny or requires a significant increase in investment beyond the purchase price.
At the same time, Twitter has expressed interest, but with a market capitalisation of only $29 billion, it needs additional investment to make an offer.