ByteDance, TikTok’s Parent Company, Reaches $300B Valuation, May Consider Share Buyback, According to Sources

NEW ⁢YORK — ByteDance, the parent company of the popular social ​media platform TikTok, is reportedly valuing itself at a ‌staggering $300 billion. This comes after the company initiated discussions​ with investors about a potential‍ share buyback program, as per two individuals privy⁣ to the matter and a document that Reuters had‍ the opportunity to​ review.

ByteDance has been actively engaging with investors in the past few weeks, proposing a share⁣ price of $180.70, the sources revealed.

This proposed price per share marks a significant increase of 12.9% from the $160 per share price in their previous buyback initiative.

The Wall Street Journal was the first to‍ report on this new valuation.

One of the sources indicated ‍that ByteDance does⁣ not currently have plans for⁢ an initial public offering (IPO). They further explained that the buyback program serves as ‌a means to provide ByteDance with liquidity.

This marks the​ third instance of a buyback program for ByteDance investors. The company has been implementing share buybacks⁣ since 2022.

In ‍December 2023, ByteDance ​proposed a buyback of approximately $5 billion worth of shares from investors at a price of $160 each. This valued the company at $268 billion at the time.

Another source, who chose to remain anonymous,​ stated that ByteDance had intended to execute the buyback program irrespective of the results of the U.S. presidential election.

ByteDance, which saw a 30% increase ‌in global revenue last year ⁢to⁤ $110 billion, is currently embroiled in a legal dispute over its U.S. assets.

A⁣ law enacted by President Joe Biden on April 24, gives ByteDance‍ until January 19 to sell‌ TikTok or face a potential ban.⁢ The‌ White House has expressed its desire to end Chinese-based ownership on​ national-security grounds, but has not ⁣called⁣ for a ban on TikTok.

In response, both TikTok and ByteDance filed a lawsuit in U.S. federal court in May, seeking ‌to overturn the law signed by Biden.

When approached for​ a comment, both TikTok and ByteDance declined.