Key Points
- Following its latest share buyback program, ByteDance is valued at $300 billion, up from $268 billion in December 2023.
- Investors were offered $180.70 per share, a 12.9% increase. ByteDance reported a 30% rise in global revenue last year, totaling $110 billion.
- ByteDance and TikTok are suing to block a U.S. law mandating TikTok’s divestiture or a potential ban.
- Despite regulatory pressures, the buyback program reinforces ByteDance’s focus on liquidity and investor trust.
ByteDance Ltd., the parent company of TikTok, has set its valuation at approximately $300 billion following its latest share buyback program. According to sources, the company recently approached investors, offering to purchase shares at $180.70 each—a 12.9% increase from the $160 per share price during its last buyback in December 2023.
The buyback initiative is ByteDance’s third since 2022 and aims to provide liquidity to the company while rewarding investors. In its previous program, ByteDance repurchased $5 billion worth of shares, valuing the company at $268 billion. The new valuation represents a significant step up despite the absence of initial public offering (IPO) plans.
ByteDance’s global revenue grew 30% last year, reaching $110 billion, signaling robust financial health amid ongoing legal and regulatory challenges. The company continues to face scrutiny over its U.S. operations, particularly TikTok, which has been the subject of national security concerns. A law signed by President Joe Biden in April requires ByteDance to sell TikTok by January 19, 2025, or face a potential ban.
In response, ByteDance and TikTok filed a lawsuit in a federal court in the U.S. to block law enforcement, arguing that such measures were unwarranted. The White House maintains that divesting Chinese ownership of TikTok is critical for national security, though it has expressed opposition to a complete ban.
Despite these challenges, ByteDance appears to be proceeding with its buyback program regardless of the political climate. This move reflects the company’s commitment to maintaining investor confidence and ensuring financial flexibility as it navigates a complex regulatory landscape.
