ByteDance, the parent company of TikTok, has set its valuation at approximately $300 billion.
The valuation arises from the company’s latest share buyback program, offering investors $180.70 per share, marking a 12.9% increase from its previous buyback price of $160 per share in December 2023-Reuters first reported.
This is ByteDance’s third share repurchase initiative since 2022, as the company continues to provide liquidity to its investors in the absence of an initial public offering (IPO).
The prior buyback valued ByteDance at $268 billion, and the current program reflects growing confidence in the company’s financial performance and prospects.
The buyback comes as ByteDance reported a 30% increase in global revenue last year, reaching $110 billion, driven by the sustained popularity of TikTok and its expanding portfolio of digital platforms. However, the company has refrained from setting a timeline for a public market debut, according to sources.
The news was first reported by The Wall Street Journal. ByteDance has maintained that its buyback strategy offers investors a viable exit option while ensuring internal liquidity without the complexities of an IPO.
Despite these financial strides, ByteDance faces significant regulatory hurdles, particularly in the United States. A law signed by President Joe Biden in April requires the company to divest TikTok by January 19, 2025, or face a ban on the app within U.S. borders. The administration has cited national security concerns over Chinese ownership of the platform.
In response, ByteDance and TikTok filed a lawsuit in federal court in May, challenging the legislation and seeking to block its enforcement. The legal battle has cast uncertainty over TikTok’s future in its largest market by user base.
ByteDance’s valuation reflects a delicate balance of its robust revenue growth and mounting geopolitical risks. The company’s decision to proceed with the buyback, regardless of the outcome of the U.S. presidential election, underscores its commitment to stabilizing investor sentiment amid external pressures.
While the $300 billion valuation highlights ByteDance’s dominance in the global tech landscape, its legal and regulatory challenges could influence future growth trajectories. For now, the company remains focused on maintaining its financial momentum while navigating a rapidly evolving regulatory environment.
