As the US survival plan progresses, TikTok owner ByteDance’s valuation reaches $500 billion US.

The figure is record-breaking for China’s tech giant, which will divest its US subsidiary into a joint venture with Silver Lake and Oracle. Two sources claim that TikTok’s Chinese owner, ByteDance, has seen its private market valuation rise to US$500 billion, a significant increase from US$400 billion earlier this year. With the deadline for a sell-or-ban law looming, TikTok CEO Chew Shou Zi informed employees last week that the company had signed a binding agreement to divest its US entity into a joint venture controlled by American investors.

According to a source who is directly involved in the matter, “Investors are happy about the deal’s terms as ByteDance can continue to reap earnings from TikTok in the US.” Do you have questions about the biggest topics and trends from around the world? SCMP Knowledge, our brand-new platform of curated content featuring explanations, frequently asked questions (FAQs), analyses, and infographics created by our award-winning team, is where you can find the answers. ByteDance did not immediately respond to a request for comment.

The short video and artificial intelligence giant would set a new record if it achieved the sum of $500 billion US dollars. ByteDance’s valuation previously approached US$400 billion in April 2021, when the company considered a public listing for Douyin, TikTok’s Chinese sibling app, according to a Post report. A few weeks later, the business stated that it did not intend to go public immediately. According to the other source, the company worked on the US deal and made progress in AI during the second quarter of this year, bringing the valuation back to US$400 billion. It rose further when a Chinese investment firm bought ByteDance shares at a valuation of US$480 billion, reflecting strong investor interest, Bloomberg reported in November.
The Beijing-based unicorn’s valuation has followed a V-shaped trajectory in recent years amid political headwinds in the US and Europe. Both US President Donald Trump and his predecessor, Joe Biden, have targeted TikTok over national security concerns, with the latest law requiring divestment by January 23, 2026.

ByteDance has opted to form a new US joint venture, named TikTok USDS Joint Venture, which will take effect a day before the deadline. Oracle, Silver Lake, and Abu Dhabi-based MGX are among the American and related investors that will collectively own 55% of the company, with each holding 15%. ByteDance will retain 19.9%, while affiliates of current ByteDance investors will hold 30.1%. Despite the milestone, ByteDance, which was once the most valuable private company in the world, is now worth less than some of its peers that are growing quickly. OpenAI is reportedly seeking new funding that could value it at US$830 billion, the Wall Street Journal reported, while SpaceX, preparing for an initial public offering next year, was valued at US$800 billion during an insider share sale, Reuters reported earlier this month.

The Beijing-based unicorn’s valuation has followed a V-shaped trajectory in recent years amid political headwinds in the US and Europe. Both US President Donald Trump and his predecessor, Joe Biden, have targeted TikTok over national security concerns, with the latest law requiring divestment by January 23, 2026.

ByteDance has opted to form a new US joint venture, named TikTok USDS Joint Venture, which will take effect a day before the deadline. Oracle, Silver Lake, and Abu Dhabi-based MGX are among the American and related investors that will collectively own 55% of the company, with each holding 15%. ByteDance will retain 19.9%, while affiliates of current ByteDance investors will hold 30.1%. Despite the milestone, ByteDance, which was once the most valuable private company in the world, is now worth less than some of its peers that are growing quickly. OpenAI is reportedly seeking new funding that could value it at US$830 billion, the Wall Street Journal reported, while SpaceX, preparing for an initial public offering next year, was valued at US$800 billion during an insider share sale, Reuters reported earlier this month.