General Atlantic plans ByteDance stake sale at $550bn valuation - report

25th Feb 2026 08:37

(Sharecast News) - Investment firm General Atlantic is reportedly selling an equity stake in ByteDance in a deal that values the Chinese social media giant at $550bn, marking a sharp rise in the privately held shares.

The potential 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.

General Atlantic, which first invested in ByteDance in 2017 when the company was valued at about $20bn, started the sale process in recent weeks and hopes to close the sale in March, the Reuters news service reported, citing unnamed sources.

Details of the financial terms of the stake sale, 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 known.

The proposed 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.

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, a source with knowledge of the matter said.

The proposed sale follows ByteDance's deal to make TikTok's American operations majority US-owned and resolve uncertainties that have plagued both companies since Trump threatened to ban the app over national security concerns.

General Atlantic's share sale comes as some of its funds approach the end of their lifecycle, a source said. Private equity firms typically have about 10-12 years to raise capital, invest in a fund, and return it back to investors.

General Atlantic's CEO Bill Ford currently sits on ByteDance's board.

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 - $370bn.

Reporting by Frank Prenesti for Sharecast.com