ByteDance Sets Valuation at Over $330 Billion Amid Revenue Growth
TikTok owner's latest employee share buyback program values the company higher than before.
ByteDance, the Chinese technology firm behind the popular short-video app TikTok, is gearing up to launch a new employee share buyback program.
This move positions ByteDance at over $330 billion in valuation, reflecting its continued growth in revenue.
The repurchase offer values each share at $200.41, marking a 5.5% increase from the previous offering that valued the company around $315 billion just six months ago.
The latest development is set to take place this autumn.
The increased valuation comes as ByteDance solidifies its status as the world's leading social media company in terms of revenue.
Its second-quarter revenues saw a 25% year-on-year increase, reaching approximately $48 billion.
This growth largely stems from its performance within the Chinese market, despite facing political pressure to separate its U.S. operations.
ByteDance has maintained robust sales growth above 20%, competing with Meta Platforms, which includes Instagram and Facebook, that reported over $42 billion in revenue during the same period.
The company's decision to conduct biannual buybacks allows it to provide liquidity to employees without an initial public offering (IPO), reflecting its financial flexibility and healthy margins.
Despite leading in revenue compared to Meta this year, ByteDance’s valuation remains significantly lower than that of Meta's market capitalization, which is approximately $1.9 trillion.
The disparity is attributed mainly to political and regulatory challenges in the U.S., where concerns over national security related to its Chinese ownership have led to a requirement for ByteDance to divest TikTok's U.S. assets by January 2025 or face a nationwide ban.
ByteDance, despite being profitable overall, has mentioned that TikTok’s U.S. business has yet to become profitable.
The company is reportedly considering selling its U.S. assets and maintaining a minority stake through a joint venture with American investors.
This move aims to address regulatory concerns while ensuring the continuity of operations in the United States.
The upcoming share buyback could help boost morale among ByteDance’s US-based staff, who have expressed concern over TikTok's uncertain future due to ongoing political tensions and potential divestment requirements.
The company has been working on developing a standalone version of the app for U.S. users as part of its contingency plans.
This move positions ByteDance at over $330 billion in valuation, reflecting its continued growth in revenue.
The repurchase offer values each share at $200.41, marking a 5.5% increase from the previous offering that valued the company around $315 billion just six months ago.
The latest development is set to take place this autumn.
The increased valuation comes as ByteDance solidifies its status as the world's leading social media company in terms of revenue.
Its second-quarter revenues saw a 25% year-on-year increase, reaching approximately $48 billion.
This growth largely stems from its performance within the Chinese market, despite facing political pressure to separate its U.S. operations.
ByteDance has maintained robust sales growth above 20%, competing with Meta Platforms, which includes Instagram and Facebook, that reported over $42 billion in revenue during the same period.
The company's decision to conduct biannual buybacks allows it to provide liquidity to employees without an initial public offering (IPO), reflecting its financial flexibility and healthy margins.
Despite leading in revenue compared to Meta this year, ByteDance’s valuation remains significantly lower than that of Meta's market capitalization, which is approximately $1.9 trillion.
The disparity is attributed mainly to political and regulatory challenges in the U.S., where concerns over national security related to its Chinese ownership have led to a requirement for ByteDance to divest TikTok's U.S. assets by January 2025 or face a nationwide ban.
ByteDance, despite being profitable overall, has mentioned that TikTok’s U.S. business has yet to become profitable.
The company is reportedly considering selling its U.S. assets and maintaining a minority stake through a joint venture with American investors.
This move aims to address regulatory concerns while ensuring the continuity of operations in the United States.
The upcoming share buyback could help boost morale among ByteDance’s US-based staff, who have expressed concern over TikTok's uncertain future due to ongoing political tensions and potential divestment requirements.
The company has been working on developing a standalone version of the app for U.S. users as part of its contingency plans.