ByteDance Valued at $300 Billion Amid New Share Buyback Program
TikTok’s parent company ByteDance has had itself valued at a $300 billion price. The figure comes at a time when the company has embarked on share buyback program in a bid to increase its shares float in the market. To this end, insiders said ByteDance proposed to purchase the shares back from its investors at $180.70 each, as a document viewed by Reuters reveals. This is a 12.9% higher than the company’s last buyback price of $160 per share.
It was first reported in the Wall Street Journal. Sources close to the issue state that ByteDance has not embarked on any processes of seeking a public offering as an organization. However, these buyback programs are supposed to bring more flexibility and cash availability to the enterprise.
ByteDance, however, is no stranger to this kind of move having done something similar before. In December 2023, the company too had another buyback offer, through which it bought back $5 billion worth of shares from the market. At the time, ByteDance’s shares were $160 each, so its value was equal to $268 billion.
According to one source, the program was in the offing even if the U.S. presidential election was different. The company has been operating in turbulent waters recently and especially in the United States where its future is unpredictable.
In June this year, United States President Joe Biden signed a law that allows ByteDance to divest TikTok by January 19, 2025, or face a ban. The White House has cited national security and proposed having TikTok change its ownership from Chinese. However, officials said they did not advocate for the full removal of the app from the market as well.
In response, ByteDance and TikTok joined the lawsuit in May via the U.S federal system. They are also protesting against it and want to prevent the new law from being implemented. Neither company has offered any more information on the subject.
However, the company persists and expands: ByteDance. Global revenue last year rose 30% to $110 billion. However, the current legal challenges, and political environment in the U.S. are dark clouds over it.
This has been a way that ByteDance has been able to stay afloat while operating in this sort of environment. At the moment, much of the management, if not all of it, appears to be geared towards maintaining its investors’ goodwill and its operations.
What will follow next will largely depend on the legal battle that it has opened in the United States as well as how it is going to neutralize the issues concerning the ownership of TikTok. As new events are taking place, investors, policymakers, and users follow their progress most closely.
However, the company persists and expands: ByteDance. Global revenue last year rose 30% to $110 billion. However, the current legal challenges, and political environment in the U.S. are dark clouds over it.
This has been a way that ByteDance has been able to stay afloat while operating in this sort of environment. At the moment, much of the management, if not all of it, appears to be geared towards maintaining its investors’ goodwill and its operations.
What will follow next will largely depend on the legal battle that it has opened in the United States as well as how it is going to neutralize the issues concerning the ownership of TikTok. As new events are taking place, investors, policymakers, and users follow their progress most closely.
