US venture capital firm Andreessen Horowitz is reportedly in discussions to invest in Chinese social media app TikTok as part of a buyout plan aimed at separating the platform from its Chinese owners, the Financial Times has reported.
The plan, led by Oracle and other American investors, seeks to carve TikTok out of its parent company, ByteDance, amid concerns over Chinese control, the report said.
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Marc Andreessen, co-founder of Andreessen Horowitz, is involved in talks to secure new outside investment to facilitate the buyout of TikTok’s Chinese investors.
The discussions are part of a broader effort to ensure TikTok’s continued operation in the US, with a federal law set to ban the app unless its US arm is sold to non-Chinese entities by 5 April, multiple people familiar with the matter told the publication.
In January, US President Donald Trump ordered delaying the enforcement of the law banning TikTok after briefly going offline late on 18 January.
According to sources, TikTok’s US arm is likely to be valued based on its sales, with 2024 revenues reaching $36bn globally, excluding China.
The US accounts for approximately one-third of this revenue. The bid has emerged as a frontrunner ahead of the impending deadline, with Andreessen Horowitz being approached to bolster financial support.
Previously, Andreessen Horowitz invested in Facebook and made a $400m contribution to Elon Musk’s Twitter buyout in 2022.
The firm is considering a significant investment in TikTok, as discussions with TikTok’s advisers and the White House continue, the report added.
Blackstone Group and other large asset managers, not currently invested in ByteDance, have also been approached for late-stage talks to separate TikTok from its parent company, sources told the publication.
Blackstone is reportedly considering an investment below $1bn, while Andreessen Horowitz is said to be interested in a larger stake.
The negotiations involve TikTok’s largest US investors, alongside Oracle, to assure that the app is free from Chinese control.
ByteDance’s existing backers, including General Atlantic, Susquehanna, KKR, and Coatue, are reportedly seeking additional stakes in a spun-off TikTok US business.
Oracle, co-founded by Larry Ellison, may take a small shareholding and secure TikTok’s US data, allowing ByteDance to retain its algorithm, a central demand of the Chinese government.
In January, reports emerged that Microsoft was in discussions to acquire TikTok and had expressed interest in sparking a bidding war for the video-sharing app.
