Exclusive-TikTok owner ByteDance sets valuation at over $330 billion as revenue grows, sources say
ByteDance, the parent company of the popular short-video app TikTok, is gearing up to launch a new employee share buyback program that will value the Chinese tech giant at over $330 billion. This move is driven by the company’s continuous revenue growth, according to sources familiar with the matter.
The upcoming buyback will offer current employees $200.41 per share, representing a 5.5% increase from the previous buyback six months ago. At that time, each share was valued at $189.90, placing ByteDance’s overall worth at around $315 billion. The buyback is expected to be initiated in the autumn.
ByteDance’s recent revenue growth has solidified its position as the world’s largest social media company by revenue. In the second quarter alone, the company saw a 25% year-on-year increase in revenue, totaling approximately $48 billion. Most of this revenue comes from the Chinese market, as ByteDance continues to navigate political pressures to divest its U.S. operations.
The company’s biannual buyback programs provide employees with an opportunity to cash out some of their holdings, reflecting ByteDance’s financial strength and expanding business ventures. Unlike many late-stage private companies that rely on external investor capital for buybacks, ByteDance utilizes its own balance sheet, showcasing its financial flexibility and healthy margins.
ByteDance is also recognized as a leader in artificial intelligence in China, having made substantial investments in AI-related infrastructure and technology development. Despite its strong financial performance, ByteDance’s valuation remains significantly lower than that of Meta, largely due to political and regulatory risks associated with its Chinese ownership.
In the U.S., ByteDance faces intense pressure from lawmakers concerned about national security risks linked to its ownership of TikTok. Last year, Congress passed a law requiring ByteDance to divest TikTok’s U.S. assets by January 19, 2025, or face a nationwide ban of the app, which boasts 170 million U.S. users.
President Donald Trump has granted TikTok multiple extensions to divest its U.S. operations, with the most recent deadline set for September 17. Some lawmakers have criticized the delays, citing national security concerns and accusing the administration of flouting the law.
If the sale of TikTok’s U.S. business is finalized, it is expected to be owned by a joint venture comprising an American investor consortium and ByteDance, which will retain a minority stake. The consortium includes current ByteDance shareholders like Susquehanna International Group, General Atlantic, and KKR, along with Andreessen Horowitz.
The new ByteDance buyback initiative could help boost morale among its U.S.-based employees amid uncertainties surrounding TikTok’s future. The company is also reportedly working on developing a standalone app for U.S. users as a contingency plan.
This article is a rewrite of a piece originally reported by Krystal Hu, Julie Zhu, and Kane Wu for Reuters, and has been adapted for a WordPress platform.
