ByteDance, the Chinese parent company of TikTok, is preparing a new employee share buyback program that will value the company at over $330 billion, according to sources familiar with the matter. The repurchase offer is set at $200.41 per share, a 5.5% increase from six months ago when employees were offered $189.90, valuing the firm at around $315 billion.
The buyback, expected this autumn, reflects ByteDance’s strong financial performance. The company’s second-quarter revenue surged 25% year-on-year, reaching approximately $48 billion, following a $43 billion haul in the first quarter that pushed it ahead of Meta in social media sales. Most of its revenue still comes from China, as it faces political challenges abroad.
Unlike many private firms that use external capital for buybacks, ByteDance has consistently relied on its own balance sheet, highlighting robust margins and financial flexibility. Other late-stage private companies such as SpaceX and OpenAI also run similar programs to provide liquidity for employees.
ByteDance has also invested heavily in artificial intelligence, spending billions on Nvidia chips and expanding its AI infrastructure. However, despite surpassing Meta in revenue growth, its valuation remains under one-fifth of Meta’s $1.9 trillion market capitalization, mainly due to political and regulatory risks in the U.S.
TikTok remains at the center of U.S.-China tensions. Congress has ordered ByteDance to divest TikTok’s U.S. operations by January 19, 2025, though President Donald Trump has repeatedly extended the deadline, most recently to September 17. U.S. investors, including Susquehanna International Group, General Atlantic, KKR, and Andreessen Horowitz, are leading a consortium to acquire the app, while Blackstone recently dropped out.
The future of TikTok in the U.S. remains uncertain, with a potential sale still in negotiations. ByteDance has reportedly explored a contingency plan for a standalone U.S. app, but no final decision has been made. Meanwhile, the buyback program is expected to reassure employees amid political turbulence and keep morale steady.
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