ByteDance, the Chinese tech giant behind TikTok, is reportedly preparing a new employee share buyback program that will value the company at more than $330 billion, even as it faces intense political scrutiny in the U.S. and pressure to divest TikTok's U.S. operations.
ByteDance Raises Valuation With Buyback Plan
ByteDance will offer employees $200.41 per share, a 5.5% increase from its last buyback six months ago that valued the firm at about $315 billion, reported Reuters, citing three people with knowledge of the matter.
The move reflects ByteDance's strong financial position and comes as its second-quarter revenue surged to around $48 billion, up 25% year-over-year, consolidating its lead over Meta Platforms Inc. (NASDAQ:META) as the world's top social media company by sales, the report said, citing sources.
ByteDance's biannual buybacks allow employees to cash out holdings while signaling financial health.
Unlike many late-stage private companies that rely on outside capital for such programs, ByteDance is funding this repurchase using its own balance sheet.
ByteDance did not immediately respond to Benzinga's request for comments.
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TikTok Faces Deadline To Divest US Assets
Despite its revenue dominance, ByteDance remains under heavy U.S. political pressure.
Washington lawmakers have labeled TikTok a national security risk due to Chinese ownership.
Congress passed legislation in 2024 requiring ByteDance to sell TikTok's U.S. operations by Jan. 19, 2025, or face a nationwide ban.
However, President Donald Trump has extended the deadline to Sept. 17, with hints of further extensions. He has said "U.S. buyers are lined up" for TikTok, but lawmakers have criticized the delays.
Sources told the publication that a U.S.-based investor consortium, including Susquehanna International Group, General Atlantic, KKR & Co. Inc. (NYSE:KKR) and Andreessen Horowitz, has emerged as the frontrunner to acquire TikTok, with ByteDance expected to retain a minority stake.
ByteDance Prepares New US TikTok App
As negotiations continue, TikTok is reportedly building a separate app for American users, with plans to launch it in U.S. app stores on Sept. 5. Existing users will be asked to migrate by March 2026.
The move could ensure service continuity if a sale or ban proceeds.
ByteDance Strengthens AI Push Amid Global Scrutiny
ByteDance has invested billions of dollars into AI development, buying advanced Nvidia Corporation (NASDAQ:NVDA) chips and expanding its infrastructure.
Analysts say its valuation--still a fraction of Meta's $1.9 trillion market cap--reflects regulatory risks but also its leadership in social media monetization and AI innovation, the report said.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
