According to a report by Reuters on February 25, investment firm General Atlantic is planning to sell part of its stake in ByteDance, with the potential deal valuing the Chinese social media giant at up to $550 billion.
This equity divestiture marks the first significant transaction since the Trump administration approved the sale of TikTok's U.S. operations in January. The latest valuation represents a significant increase of 66% compared to the pricing of over $330 billion during last year's employee stock buyback.
Against the backdrop of sharply and continuously rising valuations in the private market, this transaction intuitively reflects the capital market's high recognition of ByteDance. It not only confirms the attractiveness of its assets but also greatly boosts other investors' expectations of obtaining substantial returns when the company eventually goes public.
Insiders revealed to the media that General Atlantic initiated the share sale process in recent weeks and hopes to complete the transaction by March. Currently, the specific financial terms of the deal and the post-sale ownership percentage of General Atlantic have not been disclosed, and neither ByteDance nor General Atlantic has commented on this.
<h2>Valuation Soars, Testing Market Appetite</h2>
Although the valuations of private companies often vary greatly in secondary market transactions, such new deals are typically seen as a litmus test for investors' appetite for the company's stock.
According to insiders speaking to Reuters, General Atlantic internally values its stake in ByteDance at $550 billion, making it reasonable to expect that the planned secondary market transaction will not be priced below this level.
This price level not only far exceeds last year's employee buyback pricing but also carries a 15% premium compared to the secondary market transaction in November of last year. At that time, Today's Capital outbid several institutions in a fierce equity auction to acquire part of ByteDance's stake from China International Capital Corporation at a valuation of approximately $480 billion, with a transaction amount of $300 million. This transaction reflects investors' enthusiasm for the scarcity of its shares.
According to data from CB Insights, based on current market valuations, ByteDance's valuation among global startups has surpassed SpaceX, second only to OpenAI, which is valued at $500 billion, firmly placing it among the most valuable startups in the world.
<h2>Fund Cycle Drives Early Investors to Cash Out</h2>
General Atlantic's move to sell shares is primarily driven by the lifecycle of some of its funds. Private equity firms typically have 10 to 12 years to raise funds, invest, and return capital to investors.
According to Reuters, General Atlantic first invested in ByteDance back in 2017, when its valuation was only about $20 billion. After years of development, the firm has achieved significant paper returns, and its CEO Bill Ford currently serves as a board member of ByteDance.
General Atlantic is not the only firm handling holdings from mature funds in the market. Last month, Reuters reported that venture capital firm HSG (formerly Sequoia China) is also raising a follow-on fund, planning to take over some of the ByteDance shares held by its soon-to-mature funds at a valuation of $350 billion to $370 billion
<h2>Strong Performance Supports High Valuation</h2>
ByteDance is highly sought after in the private equity market, primarily due to its strong performance in global business and financial data, as well as its potential in AI technology layout.
According to a report by Reuters last year, ByteDance's quarterly sales have surpassed those of Facebook's parent company Meta, making it the largest social media company in the world by sales. Data shows that ByteDance's annual profit is expected to reach approximately $48 billion by 2025

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Investment firm General Atlantic plans to sell part of its stake in ByteDance, with a valuation as high as $550 billion, a 14.6% increase from the $480 billion valuation in secondary market transactions last November, and a 66% increase from last year's employee buyback price. Strong financial performance—annual profits are expected to reach $48 billion, surpassing Meta—and the easing of uncertainties surrounding TikTok's U.S. operations have jointly supported this high valuation

- General Atlantic plans to sell its stake in ByteDance, potentially valuing the company at $550 billion, following U.S. approval for TikTok's sale.  
- This marks a significant increase from last year’s employee stock buyback valuation of $330 billion and reflects investor confidence in ByteDance's asset appeal.  
- The sale is driven by General Atlantic's fund lifecycle, as the company seeks to liquidate its profitable investment, amidst a backdrop of rising valuations in the private market.

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ByteDance's new valuation is $550 billion!