Private equity giant Blackstone has exited a consortium aiming to acquire or invest in TikTok’s U.S. operations, a source familiar with the matter confirmed on Friday. The move introduces new uncertainty into a deal already under heavy scrutiny and deeply entwined in ongoing U.S.-China trade discussions.

The development marks the latest twist in a saga that has seen ByteDance, TikTok’s Beijing-based parent company, repeatedly granted extensions by U.S. authorities to divest its American operations amid rising national security concerns.

Blackstone’s withdrawal, which has not been formally announced, removes one of the most high-profile financial backers from the table, casting fresh doubt on the consortium’s future and the viability of the deal itself.

“The level of uncertainty and delays has made the situation increasingly complex,” the source said, speaking on condition of anonymity due to the sensitivity of the discussions.

The U.S. government has long expressed concern that TikTok could pose data privacy and national security risks due to its Chinese ownership. As part of efforts to mitigate those fears, ByteDance has been in talks with U.S. firms about restructuring its American business, including possible sales, spin-offs, or partnerships.

However, political tensions between Washington and Beijing have further complicated negotiations. The TikTok deal is now being seen as a bargaining chip in broader trade discussions between the two superpowers.

It remains unclear which firms are still actively participating in the bid or what the new timeline for a decision might be. ByteDance, TikTok, and Blackstone have declined to comment publicly.

With the deadline for divestment pushed back multiple times, and with key financial players now backing out, the future of TikTok’s U.S. presence remains as uncertain as ever.