Investment firm General Atlantic is preparing to sell its stake in TikTok's parent company ByteDance at a massive $550 billion valuation. This represents a 66% increase from last year's pricing and comes after the Trump administration cleared TikTok's U.S. operations sale in January.
TikTok’s parent company ByteDance has reached a staggering $550 billion valuation as investment firm General Atlantic prepares to sell its ownership stake, according to two sources familiar with the transaction.
The proposed sale would mark the first major divestment since the Trump administration approved the transfer of TikTok’s U.S. operations last month, and represents a massive 66% increase from the company’s $330 billion valuation during a share repurchase program last year.
This latest valuation also shows a 15% boost from a secondary market transaction in November that priced ByteDance at $480 billion, sources revealed last month.
General Atlantic, which initially backed ByteDance in 2017 when the company was worth approximately $20 billion, began the process of selling portions of its holdings in recent weeks and aims to complete the transaction by March, one source indicated.
Specific financial details of the stake sale, including General Atlantic’s current ownership percentage and what portion will remain after the deal, have not been disclosed.
The transaction highlights ByteDance’s remarkable and consistent growth in private market valuations, potentially delivering substantial returns to other investors when the company eventually goes public.
Both sources requested anonymity as they lack authorization to discuss the matter publicly. ByteDance has not responded to requests for comment, while General Atlantic declined to address the proposed share sale.
Valuations for private companies can fluctuate significantly in secondary market deals, but such transactions serve as important indicators of investor confidence in a company’s stock.
ByteDance’s true market worth remains unclear since its shares trade privately, and secondary market deal terms are not made public.
General Atlantic has internally assessed its ByteDance investment at the $550 billion level, making it logical for the firm to seek similar pricing in its planned secondary sale, the second source explained.
The share sale follows ByteDance’s agreement to transition TikTok’s U.S. operations to majority American ownership, resolving ongoing uncertainties that have affected both companies since President Donald Trump raised national security concerns about the app.
General Atlantic’s decision to sell comes as some of its investment funds near the end of their operational cycles, the first source noted. Private equity firms typically operate on 10-12 year timelines to raise capital, make investments, and return profits to their investors.
General Atlantic CEO Bill Ford currently serves on ByteDance’s board of directors.
ByteDance has become the world’s largest social media company by revenue, surpassing Meta (Facebook’s parent company), as Reuters reported previously. The Chinese firm’s annual profits for 2025 could reach approximately $48 billion.
Separately, venture capital firm HSG, previously known as Sequoia Capital China, is establishing a continuation fund to acquire ByteDance shares from maturing funds at a valuation between $350 billion and $370 billion, Reuters reported last month.