By Echo Wang and Kane Wu
New York/Hong Kong — Investment firm General Atlantic is selling an equity stake in ByteDance in a deal that values the Chinese social media giant at $550bn, two people with knowledge of the matter said, marking a dramatic rise in the privately held shares.
The potential stake divestment will be the first since President Donald Trump’s administration cleared the sale of the US interests of ByteDance’s TikTok unit in January, and marks a 66% jump in value since a share buyback last year priced the company at more than $330bn.
It also represents a 15% jump from a secondary market deal in November last year that valued ByteDance at $480bn, according to sources last month. A secondary market deal is the sale of shares in an unlisted company by existing shareholders to another investor.
General Atlantic, which first invested in ByteDance in 2017 when the company was valued at about $20bn, started the process to sell some of its shares in recent weeks and hopes to close the sale in March, said one source.
Details of the financial terms, General Atlantic’s shareholding in ByteDance, and how much the New York-based investment firm will own in the social media company after the transaction were not immediately disclosed.
The planned transaction underscores a sharp and sustained rise in the private market valuation of ByteDance and bolsters the prospects for its other investors, who are expected to enjoy a windfall when the company eventually makes its public market debut.
The sources declined to be named as they were not authorised to speak to the media. ByteDance did not respond to a Reuters request for comment, while General Atlantic declined to comment on the proposed share sale.
TikTok uncertainties
Valuations of an unlisted company can vary widely in secondary market transactions, but any such new trade is seen as a test of investor appetite for the company’s shares.
ByteDance’s market value is opaque since the shares are privately held, and deal terms for the secondary market trades are not publicly disclosed.
Internally, General Atlantic has valued its ByteDance holding at $550bn, and it is sensible for it to expect no less in its planned secondary trade, said the second source with knowledge of the matter.
The proposed sale follows ByteDance’s deal to make TikTok’s US operations majority US-owned and resolve uncertainties that have plagued both companies since Trump threatened to ban the app over national security concerns.
End of life cycle
General Atlantic’s share sale comes as some of its funds approach the end of their life cycle, said the first source. Private equity firms typically have about 10 to 12 years to raise capital, invest in a fund and return it back to investors. General Atlantic CEO Bill Ford sits on ByteDance’s board.
ByteDance, whose revenues have surpassed Facebook owner Meta, has emerged as the world’s largest social media company by sales, Reuters reported last year. The Chinese company’s annual profit for 2025 could reach about $48bn.
Venture capital firm HSG, formerly Sequoia Capital China, is separately raising a continuation fund that will take over some of its ByteDance shares held by funds that are reaching maturity at a valuation of between $350bn and $370bn, Reuters reported last month.
ByteDance’s other investors include KKR & Co, Susquehanna International Group and China’s Primavera Capital Group.
The company’s core products include news aggregator Toutiao and short video app Douyin, TikTok’s equivalent in China. In 2025, it emerged as China’s leading player in consumer AI apps thanks to its chatbot, Doubao.
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