ByteDance's new valuation is $550 billion!

According to Reuters on February 25, investment firm General Atlantic is planning to sell a portion of its stake in ByteDance. This potential deal values the Chinese social media giant at up to $550 billion.

This equity divestment is the first major transaction since the Trump administration approved the sale of TikTok’s U.S. operations in January. The latest valuation represents a 66% increase from the over $330 billion valuation during last year’s employee stock buyback.

Against the backdrop of sharply rising and sustained private market valuations, this transaction clearly reflects strong investor confidence in ByteDance. It not only confirms the company’s asset attractiveness but also significantly boosts expectations among other investors for substantial returns when the company eventually goes public.

Sources familiar with the matter told media outlets that General Atlantic has initiated the share sale process in recent weeks and aims to complete the deal by March. The specific financial terms and the stake percentage that General Atlantic will hold after the sale have not been disclosed, and both ByteDance and General Atlantic have declined to comment.

Rising Valuations Test Market Appetite

While valuations of private companies often vary widely in secondary market trading, such new transactions are usually seen as a litmus test for investor interest in the company’s stock.

According to insiders, General Atlantic’s internal valuation of its ByteDance holdings is $550 billion. Therefore, it is reasonable to expect that the planned secondary market transaction will not be priced below this level.

This valuation not only far exceeds last year’s employee buyback price but also carries a 15% premium over the secondary market deal in November. At that time, Hillhouse Capital outbid several institutions in a competitive auction, acquiring a portion of ByteDance shares from China Merchants Group Investment Co., Ltd., at an estimated valuation of around $480 billion, for a transaction amount of $300 million. This deal reflected investor enthusiasm for the scarcity of its shares.

According to CB Insights, based on current market valuations, ByteDance’s valuation among global startups has surpassed SpaceX, ranking second only to OpenAI, valued at $500 billion, making it one of the most valuable startups worldwide.

Fund Cycle Drives Early Investor Exit

The recent share sale by General Atlantic is primarily driven by the lifecycle of some of its funds. Private equity firms typically have a 10 to 12-year cycle to raise capital, invest, and return capital to investors.

Reuters reported that General Atlantic first invested in ByteDance in 2017, when the valuation was approximately $20 billion. After years of growth, the firm has realized significant paper gains, with CEO Bill Ford still serving on ByteDance’s board.

It’s not only General Atlantic managing mature fund holdings. Reuters also reported last month that venture capital firm HSG (formerly Sequoia China) is raising a successor fund, planning to acquire some ByteDance shares held by its soon-to-expire fund at a valuation of $350 billion to $370 billion.

Strong Performance Supports High Valuations

ByteDance remains highly sought after in private markets, mainly due to its robust performance in global operations and financial metrics, as well as its potential in AI technology development.

Reuters reported last year that ByteDance’s quarterly revenue has surpassed that of Meta, Facebook’s parent company, making it the world’s largest social media company by revenue. Data indicates that ByteDance’s annual profit in 2025 could reach approximately $48 billion.

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