Zhang Yiming’s “Invisibility” and the “Visibility” of His Wealth: An Experiment with Valuation and Time
Hello everyone, I’m your financial journalist friend. Today we’re going to discuss a particularly interesting phenomenon: Why has the wealth of Zhang Yiming, an internet mogul who hasn’t been seen in public for several years and was even thought to have “disappeared,” continued to grow like a snowball?
On September 16th, the Bloomberg Billionaires Index showed that Zhang Yiming’s net worth had surpassed $105 billion, officially placing him at the top of the list of Asia’s richest people. In just seven years, his wealth has increased by eightfold, from $13 billion in 2019 to $105 billion.
Many people’s first reaction was: “Is he secretly up to something big?” or “Did he sell his company?”
Neither is the case.
Today, I’ll break down the logic behind this in simple terms. You’ll see that Zhang Yiming’s story is actually a classic example of how “ownership,” “time,” and “expectations” interact.
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Debunking a Myth: The $105 Billion Isn’t Cash in His Bank Account
First, let’s clear up a major misconception. When you read that Zhang Yiming has $105 billion, don’t imagine a vault at his home or that much cash in his bank. 99% of that money is “paper wealth.”
Why? Because ByteDance has not gone public yet.
- How is the wealth of a public company calculated? For companies like Tencent and Alibaba, the market value is determined by multiplying the number of shares by the stock price, which changes daily.
- How is the wealth of a private company calculated? For a company like ByteDance, without a public stock price, its valuation is based on three factors:
1. Employee buyback price: At what price does the company buy back shares from its employees?
2. Private transaction prices: The prices agreed upon when external investors want to buy or sell ByteDance’s shares.
3. Investor valuation models: Investment banks and analysts estimate the company’s value based on its revenue, profits, and growth rate.
Therefore, Zhang Yiming’s $105 billion is essentially a market valuation of ByteDance’s future profitability. As long as the market believes ByteDance will earn more money in the future, its value will rise, and so will his wealth.
In simple terms: It’s like having a piece of land that hasn’t been sold yet. If the surrounding land values increase and experts estimate it’s worth $100 million, then your asset is valued at $100 million—even though you haven’t received the money yet; it’s just an expectation.
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The Core Logic: He stepped Back, but His Equity Didn’t
One of the most impressive (or surprising) moves Zhang Yiming made was stepping down as CEO in 2021. He was only 38 years old at the time. In his letter, he said quite clearly: “I’m not good at socializing, I don’t like listening to reports every day; I want to study principles, read books, and daydream.” He handed over the day-to-day management to Liang Rubo.
Many people think that when a founder leaves management, their wealth decreases. But Zhang Yiming proved otherwise: Management rights and profit rights can be separated.
- Management rights: Who holds meetings, makes decisions, and manages the team? Liang Rubo does that.
- Profit rights (ownership): Who gets the biggest share of the company’s profits? Zhang Yiming does.
Zhang Yiming made a smart move: He gave up the hard work and power of being the boss but firmly retained his status as a shareholder.
It’s like a chef who no longer cooks personally but remains the major shareholder of the restaurant. As long as the restaurant does well, he gets a larger share of the profits.
The key point is: When Zhang Yiming stepped back, ByteDance was not in decline; instead, it entered a period of rapid growth. TikTok became successful globally, and Douyin (the Chinese version) became more commercially viable in China. Even though he’s no longer in the office, the algorithms, organizational structure, and product logic he created continue to generate profits efficiently.
So, his wealth growth isn’t because he’s doing nothing; it’s because the “money-making machine” he built is working even faster now that he’s in the background.
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The Shift in Valuation: From “Traffic” to “AI Potential”
Why has Zhang Yiming’s wealth skyrocketed in recent years? Besides ByteDance’s strong profitability, another key factor is the change in the capital market’s valuation logic.
In the past, investors looked at ByteDance’s traffic: How many users does it have? How long do users spend on the platform? How much money can ads generate?
This was a proven business model with substantial profits, but its growth potential was limited.
Now, investors look at ByteDance’s AI capabilities: According to The Wall Street Journal, ByteDance’s revenue is expected to reach $200 billion in 2025, with a net profit of $42 billion. In the first half of 2026, revenue exceeded $120 billion, but the net profit was only around $20 billion.
Wait—why did the profit decrease? Is it due to poor management?
On the contrary: The profit decrease is because ByteDance is investing heavily in AI research, computing power, and model training.
- Previously: They kept 80% of $100 in profits and spent 20%.
- Now: They keep 20% and spend 80% on AI.
Why is the market willing to pay a higher valuation? Because in the eyes of investors, a “traffic company” and an “AI company” are two different things:
- Traffic companies generate predictable profits today, but their growth potential is limited.
- AI companies represent future productivity with huge potential. Even if they spend a lot now, they could revolutionize entire industries if successful.
ByteDance has AI products like “Doubao” (large models) and “Seedance” (video generation), as well as vast user data for model training. This makes investors see it as more than just an advertising giant; it’s also a potential leader in the AI era.
This is the “valuation shift”:
- The traffic business determines how much money ByteDance earns today (cash flow).
- The AI business determines the premium the market is willing to pay for its future potential.
Zhang Yiming’s wealth surge is due to the market’s recognition of ByteDance’s AI potential.
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A Comparative Look: What Makes Zhang Yiming’s Wealth Unique?
To make it clearer, let’s compare Zhang Yiming with other internet magnates:
| Person | Company Status | Wealth Valuation Method | Characteristics |
| :--- | :--- | :--- | :--- |
| Ma Huateng | Tencent (listed) | Real-time stock price fluctuations | Still actively manages the company; wealth fluctuates with the stock price, stable but affected by market sentiment. |
| Jack Ma | Alibaba (listed) | Real-time stock price fluctuations | Completely stepped out of management, focuses on philanthropy and education; wealth comes from early stock dividends and stock price changes. |
| Huang Zheng | Pinduoduo (listed) | Real-time stock price fluctuations | Stepped down and devoted to research; wealth fluctuates with Pinduoduo’s stock price, though the business is relatively focused. |
| Zhang Yiming | ByteDance (unlisted) | Buyback price/private valuation | Stepped back from management; wealth has soared due to private valuations. Wealth comes from both advertising/e-commerce profits and high AI potential. |
Zhang Yiming’s uniqueness lies in:
1. Unlisted benefits: No daily market fluctuations; his valuation is determined by key parties (such as large institutions), which often reflects the company’s true potential rather than short-term sentiment.
2. Dual Drivers: He owns both profitable businesses (advertising/Douyin/TikTok) and cutting-edge technologies (AI), which together drive his high valuation.
In simple terms: Ma Huateng and Huang Zheng’s wealth is transparent and daily visible; Zhang Yiming’s wealth is less so, but the inclusion of AI adds significant potential, making it seem even more valuable.
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A Note of Caution: $105 Billion Is Both a Report Card and an Expectation
Finally, let’s keep a realistic perspective. Zhang Yiming’s $105 billion is both a reflection of ByteDance’s strength and an expectation of its future.
- Positive aspects: It shows ByteDance’s strong profitability and high market recognition.
- Risks:
- Valuation volatility: Unlisted companies’ valuations are uncertain. If ByteDance’s growth slows or AI investments don’t yield results, the valuation could drop.
- External factors: ByteDance’s global operations expose it to geopolitical risks and regulatory pressures (e.g., TikTok’s challenges in Europe and the U.S.).
- AI uncertainty: Despite heavy investments, there’s no guarantee of long-term competitive advantages and profits. If AI investments prove unproductive, market interest may wane.
In summary: Zhang Yiming became Asia’s richest person not because of a sudden windfall but because he made the right decisions about stepping back and holding onto his shares at the right time.**
He freed himself from managerial tasks to focus on long-term strategies. His shares in ByteDance happened to benefit from the transition from a “traffic-driven” to an “AI-driven” era, leading to a significant increase in value.
His wealth growth isn’t about his efforts to earn money but about the market’s willingness to pay a high price for its future potential.
For everyone, the lesson is this: Wealth accumulation often depends not on how busy you are but on whether your assets have long-term growth potential and whether the market values that potential.
As for whether $105 billion is the peak for Zhang Yiming’s wealth… As long as ByteDance continues to grow and the AI story continues, that number is likely to change. The question is: How high will the market value of ByteDance’s future be?