Private equity giant Blackstone has withdrawn from a consortium bidding to acquire TikTok’s United States operations, Reuters reported.

The move marks the latest shift in a deal clouded by delays and growing uncertainty, as TikTok’s fate remains entangled in broader U.S.-China trade tensions. Blackstone had been expected to take a minority stake in the U.S. business as part of a deal initially pushed by former President Donald Trump.

The investment group, led by Susquehanna International Group and General Atlantic—both existing investors in ByteDance, TikTok’s Chinese parent company—was seen as a leading contender. The proposed structure would have given U.S. investors an 80% stake in a newly formed American entity, with ByteDance retaining a minority share.

ByteDance’s deadline to divest TikTok’s U.S. operations has been extended multiple times. In April, Congress passed a law requiring the company to either sell or shut down TikTok by January 19, 2025. A third executive order from Trump in June moved the immediate deadline to September 17.

Some lawmakers have criticized the repeated extensions, accusing the administration of undermining national security concerns by delaying action on Chinese ownership of the app.

ByteDance is reportedly weighing several options, including restructuring or selling its U.S. unit. According to sources, TikTok generated $43 billion in revenue in the first quarter of 2024—surpassing Meta—and is currently working on a separate U.S.-focused version of the app.

The U.S.-backed consortium also includes major investors like KKR and Andreessen Horowitz, with Oracle potentially taking a stake. However, the status of other bidders remains unclear.

Talks for a spinoff deal were halted earlier this year after Beijing signaled opposition, following Trump’s announcement of steep tariffs on Chinese goods. A final sale would likely involve a joint venture between ByteDance and U.S. investors, with ByteDance holding a minority interest.