TikTok's parent company values ​​itself at $300 billion after stock buyback program

ByteDance, TikTok's parent company, valued itself at around $300 billion, after the company approached investors about a stock buyback program recently.

ByteDance's global revenue is expected to increase by 30% to $110 billion in 2023. (Source: Reuters)

ByteDance has been in contact with investors for the past few weeks and is offering $180.70 a share for the buyback, sources said, a 12.9% increase from the $160 a share price in its previous buyback program.

According to Reuters, this is ByteDance's third share buyback program, after the company began implementing buyback programs since 2022.

ByteDance has no plans for an initial public offering (IPO) in the near future and the buyback program is a way for the company to increase liquidity, one of the sources said.

In December 2023, ByteDance offered to buy back about $5 billion worth of shares from investors at $160 per share, bringing the company's valuation to $268 billion.

ByteDance, which had global revenue of $110 billion last year, is currently facing a legal battle over its US assets. A law signed by US President Joe Biden on April 24 requires ByteDance to divest its stake in TikTok by January 19, 2025, or face a ban. The White House has called for TikTok to be de-owned by a Chinese company due to national security concerns, but has stopped short of banning the app outright.

In May, TikTok and ByteDance filed a lawsuit in US federal court to stop the law from being enforced.

TikTok has been in the crosshairs of the US government for years. US officials have accused TikTok of allowing data collection and tracking of users. There are currently about 170 million TikTok users in the US, most of whom are young people.

Source: https://baoquocte.vn/cong-ty-me-cua-tiktok-tu-dinh-gia-300-ty-usd-sau-chuong-trinh-mua-lai-co-phieu-294075.html