By Krystal Hu and Dawn Chmielewski (Reuters) - TikTok's parent company ByteDance is offering to buy back shares at a higher valuation than six months ago as it launches a new share repurchase program
Exclusive-TikTok parent ByteDance valuation rises in latest share buyback,
By Krystal Hu and Dawn Chmielewski
(Reuters) - TikTok's parent company ByteDance is offering to buy back shares at a higher valuation than six months ago as it launches a new share repurchase program for U.S. employees this week, two people familiar with the matter told Reuters on Tuesday.
ByteDance told its U.S.-based employees that it is offering $189.90 per share, the people said. The price marks an increase of 11% from the per share price of $171 in their share buyback program from a year ago and $181 from six months ago.
The new share price could value ByteDance at around $315 billion, according to another source, showing the recovery of one of the most valuable private companies from a valuation drop in 2023.
The Chinese owner of the popular short video-sharing app's regular share buyback program underscores its strong balance sheet, bolstered by growing domestic and global businesses—even as its popular app, TikTok, faces the threat of a U.S. ban.
Congress cited national security concerns when it passed a law last year requiring ByteDance to divest TikTok by Jan. 19, or face a ban in the United States.
The app used by 170 million Americans briefly shut down in the U.S. hours before the ban was slated to take effect, then resumed service after President-elect Donald Trump offered a temporary reprieve.
Trump postponed enforcement of the ban for 75 days to give ByteDance the opportunity to explore its options, and tasked Vice President JD Vance to oversee the process.
(Reporting by Krystal Hu and Dawn Chmielewski in Los Angeles; editing by Kenneth Li and Chizu Nomiyama)
