How to Invest in TikTok in 2025

Investing in TikTok isn't as straightforward as investing in other popular social media companies. The popular short-form video app is owned by the Chinese company ByteDance, which doesn't trade publicly on any stock exchanges. But there's a way to get a piece of the action in one of the world's fastest-growing digital media platforms. Here's what you need to know if you're interested in investing in TikTok.

Publicly traded?

Is TikTok publicly traded?

TikTok is owned by ByteDance, a Chinese tech company. Its stock doesn't trade publicly on any exchanges. Accredited investors may be able to buy shares directly from existing owners through private equity exchanges, but without wide access to a public market, negotiating pricing and finding liquidity will be difficult.

The prospects for a ByteDance or TikTok initial public offering (IPO) anytime soon are slim. Amid slow progress on IPO efforts in 2022, ByteDance bought back $3 billion in shares at a $300 billion valuation to allow early investors to cash out some of their equity without an IPO.

In late 2023, ByteDance offered to repurchase stock from shareholders for $160 per share, valuing the company at $223.5 billion. It paid $170.81 per share in another buyback offer in early 2024 and $180.70 in late 2024, which put its value back at $300 billion.

Two ways to buy

Two best ways to invest in TikTok

Getting access to a private market with someone offering to sell ByteDance shares at a price you're willing to pay isn't easy -- or even possible -- for most investors. However, two publicly traded investment companies hold shares of ByteDance, and anyone can buy shares in them.

1. KKR

KKR (KKR 0.34%) is one of the world's oldest alternative asset investment management firms. Its investments range from private equity, like ByteDance, to energy, infrastructure, real estate, credit, and hedge funds.

KKR, along with SoftBank and General Atlantic, originally invested in ByteDance in 2018. At the time, the Chinese company was valued at $75 billion. At the end of 2020, it added to its position in another funding round, valuing the company at $180 billion.

But ByteDance is just a small portion of the firm's overall portfolio. The firm has more than $600 billion in assets under management, including $195 billion in private equity investments.

Although KKR has a great track record of producing returns for investors, it's important to note that investing in KKR differs from investing in its portfolio. KKR is also competing with other asset management firms for investors, putting pressure on its fees.

2. SoftBank

SoftBank (SFTB.Y 8.77%) is a Japanese telecom and e-commerce company that also operates a holding company and its well-known $100 billion Vision Funds. Vision Funds invests primarily in private equity companies with valuations topping $1 billion, also known as unicorns.

SoftBank bought its stake in ByteDance in 2018 in the same funding round as KKR's initial investment. SoftBank owns a massive portfolio of both public and private equity.

SoftBank's most notable holdings include Alibaba (BABA -0.5%), T-Mobile (TMUS 0.85%), and chip-designer Arm Holdings (ARM 2.16%). However, the holdings are heavily concentrated in early-stage internet and e-commerce investments, so investors aren't getting a tremendously diversified portfolio. As the tech start-up industry goes, so does SoftBank's portfolio.

Should I invest?

Should I invest in TikTok?

TikTok's parent company, ByteDance, is an exciting business for investors. It popularized the short-form video format, built an incredible content-recommendation algorithm, and is working on new ad technology to monetize it. But it's also a high-risk investment because it faces potential challenges from regulators and deep-pocketed competitors.

TikTok's user growth is slowing from the astronomical levels it saw in previous years, but its user monetization has come on strong in recent years. ByteDance generated $73 billion in revenue in the first half of 2024, $17 billion of which came from outside China.

To put that in perspective, Facebook parent company Meta Platforms (META 0.92%) generated $75 billion in revenue in the first half of 2024. Meta's valuation is significantly higher than ByteDance's, which may be due to better profitability for Meta but more likely has to do with the regulatory challenges facing ByteDance.

While many countries have banned or considered banning TikTok, few hold the weight of the TikTok ban in the United States. In April 2024, Congress passed a law banning TikTok's operations in the United States. The Supreme Court upheld the law, which went into effect in January 2025. The government says Chinese ownership of the popular app poses a national security concern.

The ban prevents app stores from distributing the app, but ByteDance continues to operate its video service in the country with the help of its cloud provider. For now, the current operations remain in a gray area.

The Trump administration has called for TikTok to sell a majority ownership of its U.S. operations to continue operating in the country and resume its distribution through app stores. Until the issue is resolved, it will remain an overhang on ByteDance's valuation, considering the U.S. presents the biggest opportunity for the Chinese company to grow profits.

If ByteDance has to sell its U.S. operations, its future earnings growth will be significantly curbed. This could also prevent it from profitably investing in better artificial intelligence (AI) and content to compete with Meta and others around the world.

Related investing topics

Regulatory risks and established competition aren't unique to TikTok. Many Chinese tech companies face similar challenges regarding regulation, and any small start-up must overcome deep-pocketed competitors. As long as you understand those risks, investing in TikTok through a private equity asset management firm may be suitable for your portfolio.

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