ByteDance Plans Massive Buyback Amid Political Challenges

ByteDance, the parent company of the popular app TikTok, is preparing to launch a significant employee share buyback that places its valuation at over $330 billion. This move comes amidst sustained revenue growth, insiders reveal. Employees will be offered $200.41 per share, marking a 5.5% increase from the previous offering six months ago, which valued the company at approximately $315 billion. The buyback is anticipated to take place this autumn.

The company's latest buyback arrives as ByteDance tightens its grip as the leading social media firm globally by revenue, with second-quarter figures showing a 25% rise year-on-year. Much of this revenue, reaching about $48 billion, is sourced from the Chinese market, even as ByteDance navigates political pressures in the United States to divest its U.S. operations. Unreported previously, this revised valuation and revenue growth underline ByteDance's strategic financial positioning.

While ByteDance's current market valuation significantly undercuts Meta's, primarily due to U.S. political and regulatory concerns, the buyback could boost morale among staff uncertain about TikTok's U.S. business outlook. ByteDance remains profitable despite pressures, and a finalized U.S. sale could lead to a joint venture, potentially mitigating some of the prevailing tensions.

(With inputs from agencies.)