Private equity firms including Susquehanna International Group, General Atlantic, and KKR—each an existing investor in ByteDance—are playing a central role in ongoing discussions over the future of TikTok’s US operations, according to a Reuters report. 

The talks, coordinated with the White House, aim to reshape ownership of the short-form video platform in a way that aligns with recent US legal requirements.

A proposal currently under consideration would allow these investors to increase their stakes and spin off TikTok’s US business, effectively reducing foreign ownership to below 20 percent in accordance with new national security legislation introduced in January. That law requires businesses deemed sensitive to US national interests to limit foreign ownership, creating an opportunity for US-based private capital to step in.

Susquehanna and General Atlantic, both of whom hold board seats at ByteDance, are reported to be leading the negotiations. Oracle, which already manages TikTok’s US data infrastructure, is expected to continue playing a key role by ensuring that user data remains stored in the US and inaccessible to external jurisdictions.

ByteDance maintains that TikTok’s US operations are independently managed, with domestic oversight of data handling and content moderation. The proposed ownership shift would further reinforce this position while maintaining operational continuity for the platform and its users.

In addition to the lead investors, Coatue, a prominent private equity firm focused on technology, is also involved in the discussions. The evolving deal could result in a significant commitment of private equity capital, with a focus on preserving TikTok’s long-term value and presence in the US market.

While the process remains ongoing, the involvement of experienced US investors signals confidence in TikTok’s future and represents a collaborative approach to addressing regulatory expectations.