TikTok owner ByteDance's valuation hits US$500 billion as US survival plan advances

Core Insights - ByteDance's valuation has surged to US$500 billion in the private market, up from US$400 billion earlier this year, as it advances a survival plan in the US [1][3] - TikTok CEO Chew Shou Zi announced a binding agreement to divest its US entity into a joint venture controlled by American investors [1][6] - Investors are pleased with the deal, allowing ByteDance to continue earning from TikTok in the US [2] Valuation and Market Context - The US$500 billion valuation marks a record for ByteDance, which previously approached US$400 billion in April 2021 [3] - The valuation had dropped to US$400 billion in Q2 of this year as the company worked on the US deal and progressed in AI [4] - A Chinese investment firm recently bought ByteDance shares at a valuation of US$480 billion, indicating strong investor interest [4] Political and Regulatory Environment - ByteDance's valuation has followed a V-shaped trajectory amid political challenges in the US and Europe, with both Trump and Biden targeting TikTok over national security concerns [5] - A new law requires divestment by January 23, 2026, prompting ByteDance to form a new US joint venture [5][6] Joint Venture Structure - The new joint venture, TikTok USDS Joint Venture, will be established a day before the divestment deadline [6] - A consortium of American and allied investors, including Oracle, Silver Lake, and Abu Dhabi-based MGX, will hold 50% of the entity, with each owning 15% [6] - Affiliates of existing ByteDance investors will hold 30.1%, while ByteDance will retain 19.9% [6]