US private equity firm General Atlantic is selling an equity stake in ByteDance, the Chinese company behind TikTok, raising its valuation to $550 billion, according to Reuters. This valuation increase follows a report by the South China Morning Post in December, indicating a jump from $400 billion to $500 billion in 2025. General Atlantic's initial investment in ByteDance dates back to 2017, and the firm is now in the process of selling some of its shares with plans to conclude the sale in March.

The specifics of the deal, such as the share quantity General Atlantic will retain post-transaction, were not disclosed in the report. Both General Atlantic and ByteDance have not yet commented on the matter. The $550 billion valuation aligns with General Atlantic's strategy as some of its funds near the end of their life cycle, as per a Reuters source.

This prospective sale marks a significant development since ByteDance's recent agreement with the Trump administration in January. The deal ensured the continuation of ByteDance's US operations under a newly established joint-venture structure, primarily owned by US entities. This upcoming equity sale adds to the evolving narrative surrounding ByteDance's global operations and strategic partnerships.