TikTok’s parent company, ByteDance, has been valued at approximately $300 billion, sources familiar with the matter revealed. The company recently approached investors with a share buyback offer priced at $180.70 per share, reflecting a 12.9% increase from its previous buyback price of $160. ByteDance’s valuation surge aligns with its ongoing effort to provide liquidity to investors, a priority in the absence of any immediate IPO plans.
This marks ByteDance’s third share buyback program since 2022. Last December, the company offered to buy back around $5 billion worth of shares at $160 each, which valued the company at $268 billion. The latest move signals ByteDance’s confidence in its growth trajectory, as global revenue climbed 30% last year to $110 billion.
Despite its financial momentum, ByteDance faces mounting legal pressure in the U.S. President Joe Biden signed a law in April 2024 requiring the Chinese-owned company to divest TikTok by January 19 or face a potential ban, citing national security concerns. ByteDance and TikTok filed a lawsuit in May, challenging the law and seeking to block its enforcement. The Biden administration has emphasized a preference for ending Chinese-based ownership rather than banning TikTok outright.
ByteDance has assured investors that the buyback program will proceed regardless of the U.S. political landscape. While the valuation reflects investor confidence, ByteDance’s legal battles could significantly influence its operations in the U.S.
Both ByteDance and TikTok declined to comment on the developments.
Featured image courtesy of Roll Call
Follow us for more updates on ByteDance’s valuation.