ByteDance Announces Billion-Dollar Employee Share Buyback Amidst TikTok Divestment Pressure
ByteDance plans a share buyback, valuing itself at over $330 billion, as it faces pressure to divest TikTok's US operations. The new buyback price represents a 5.5% increase and comes as ByteDance's revenue grows, making it the largest social media company. Discussions continue about TikTok's sale due to US political concerns.
ByteDance, the influential owner of TikTok, is initiating a new employee share buyback that places its valuation at over $330 billion, according to insider sources. This move builds on the company's robust revenue growth, a testament to its standing as the largest social media firm by revenue.
The repurchase program for team members will involve a price of $200.41 per share, marking a 5.5% uptick from its previous offer merely six months ago. This strategic financial maneuver underscores ByteDance's strengthened fiscal position and ongoing expansion, both domestically and internationally.
Despite surpassing Meta in revenue figures, ByteDance continues to grapple with US political challenges necessitating the divestiture of TikTok's assets by early 2025. The company's financial resilience is underscored by its capability to self-fund employee buybacks, highlighting its significant investment in AI and infrastructure.
(With inputs from agencies.)
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