ByteDance, the parent company of TikTok, has raised its self-valuation to $300 billion as part of a recent share buyback initiative. Investors were approached with an offer of $180.70 per share, reflecting a 12.9% increase from the previous buyback rate of $160 per share, according to insider sources.
The company has consistently conducted share buybacks since 2022, with this being the third such program. In December 2023, ByteDance initiated a $5 billion share buyback at $160 per share, valuing the company at $268 billion. The latest valuation signifies a strategic move to provide liquidity to investors, as the company reportedly has no immediate plans for an IPO.
The buyback program, sources revealed, was planned independently of the US presidential election outcome. ByteDance, which saw a 30% surge in its global revenue last year to $110 billion, continues to face challenges in the US. Recent legislation signed by President Joe Biden mandates ByteDance to divest TikTok’s US operations by January 19 or face a ban, citing national security concerns.
In response, ByteDance and TikTok filed a lawsuit in US federal court, aiming to block the enforcement of this law. Both companies have refrained from commenting on the ongoing legal proceedings.
The rise in ByteDance’s valuation underscores its resilience amid regulatory pressures, solidifying its position as a tech powerhouse while navigating complex geopolitical landscapes.
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