6 days Ago
ByteDance, the parent company of TikTok, is valuing itself at approximately $300 billion through a new share buyback program, according to a report by the Wall Street Journal. This valuation marks a 12.9% increase from its previous share buyback price in December 2023.
As per the report, the Beijing-based tech giant recently approached investors with an offer to purchase shares at $180.70 each, compared to $160 per share during its last buyback program. The latest move highlights ByteDance's strategy to provide liquidity for its investors amid the absence of plans for an initial public offering (IPO), shares the report.
This is the third buyback program ByteDance has conducted since 2022. In the previous round, the company bought back around $5 billion worth of shares, valuing itself at $268 billion, according to the report. ByteDance's financial growth remains strong, with global revenue increasing by 30% in the past year to $110 billion.
However, the company faces ongoing legal and regulatory challenges in the United States. A law signed by US President Joe Biden in April gives ByteDance until January 19, 2024, to sell TikTok's US assets or face a potential ban over national security concerns. ByteDance and TikTok have filed a lawsuit to block the enforcement of this law.
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