ByteDance Valuation Jumps 66% From Last Year’s Buyback
Investment firm General Atlantic is selling a stake in ByteDance in a deal that values the Chinese social media giant at $550 billion, according to people familiar with the matter. The transaction marks a dramatic increase in the valuation of the privately held company.The proposed divestment represents a 66% rise from last year’s share buyback, which valued ByteDance at more than $330 billion. It also reflects a 15% increase from a secondary market transaction in November that valued the company at $480 billion.
If completed, this would be the first stake sale since the Trump administration cleared the sale of ByteDance’s TikTok US interests in January.
General Atlantic Moves to Close Sale in March
General Atlantic, which first invested in ByteDance in 2017 when the company was valued at about $20 billion, has initiated the process of selling part of its holdings in recent weeks. The firm aims to close the transaction in March.Details regarding the size of the stake being sold, the financial terms of the transaction, and General Atlantic’s post-sale ownership are not immediately known. The New York based investment firm declined to comment on the proposed sale, while ByteDance did not respond to a request for comment.
Internally, General Atlantic has valued its ByteDance holding at $550 billion and is reportedly seeking no less than that in the planned secondary trade.
Private Market Valuations Highlight Investor Appetite
Valuations in secondary market transactions for unlisted companies can vary widely. However, each new trade is seen as a gauge of investor demand. ByteDance’s market value remains opaque as its shares are privately held and deal terms are not publicly disclosed.The stake sale comes as some of General Atlantic’s funds approach the end of their lifecycle. Private equity firms typically operate on a 10 to 12 year cycle to raise capital, invest, and return funds to investors.
ByteDance Strengthens Global Position Across Social Media and AI
ByteDance’s core products include news aggregator Toutiao and short video app Douyin, TikTok’s equivalent in China. In 2025, the company also emerged as China’s leading player in consumer AI apps with its chatbot Doubao.The company’s revenues have surpassed those of Meta, the owner of Facebook, according to a report last year. ByteDance’s annual profit for 2025 could reach about $48 billion.
Other investors in ByteDance include KKR & Co, Susquehanna International Group, and Primavera Capital Group. Separately, HSG, formerly Sequoia Capital China, is raising a continuation fund to take over some of its ByteDance shares at a valuation between $350 billion and $370 billion.
General Atlantic’s CEO Bill Ford currently sits on ByteDance’s board, underscoring the firm’s long standing association with the social media major.
Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.