Report: ByteDance Puts IPO on Hold as Grey Market Valuation Exceeds $600 Billion
Claire Weston
ByteDance's board decided in early May that a listing is unlikely soon — the company's grey-market valuation already tops $600 billion, and founder Zhang Yiming is betting it will keep climbing.
Why skip an IPO at a $600 billion valuation?
Nikkei Asia reports that ByteDance's board concluded in early May that a near-term listing is unlikely.
A person with direct knowledge of the board's thinking said the delay is tied to Zhang Yiming's view that the valuation will keep rising.
This means → Zhang sees listing now as selling low — handing upside to late-stage investors who bear less risk.
How big is $600 billion before a listing?
A senior U.S. bank tech-investment banker said ByteDance's grey-market valuation — the informal market where shares of unlisted companies trade — already exceeds $600 billion.
Reaching a $1 trillion market cap is "entirely possible," the banker added.
In plain terms = ByteDance is already worth more than most listed companies worldwide, and the number is still climbing.
How much has the TikTok geopolitical risk eased?
Earlier this year, Oracle and an investor consortium agreed to take 80% of TikTok's U.S. entity, reducing the uncertainty around ByteDance's American operations.
That development preceded the board's decision to shelve the IPO.
This reflects a counterintuitive dynamic: easing geopolitical pressure actually gave Zhang more reason to wait — with the biggest risk fading, there is less urgency to cash out.
Who benefits from the wait?
Nikkei Asia reports that ByteDance's rising valuation is rewarding investors on both sides of the Pacific, including Sequoia, General Atlantic, and Carlyle Group.
For some of them, ByteDance alone generates enough returns to offset losses elsewhere in their portfolios.
The competitive ripple effect is widening too — Tencent's music business and Meta's WhatsApp were both named as companies feeling the threat.
Where do AI monetization and a future listing point?
ByteDance's AI chatbot Doubao is rolling out paid tiers on top of its free service. Morgan Stanley analysts said this signals "the industry shifting from user subsidies to commercial sustainability."
TikTok CEO Shou Chew said in April in New York that TikTok had over 1 billion users two years ago, covering between one-third and two-thirds of the world's countries.
If ByteDance eventually lists, the most likely venue is Hong Kong, the report noted.
Content is for reference only, not financial advice.