ByteDance, the parent company of TikTok, is preparing to roll out a new employee share repurchase program that will value the company at more than $330 billion, according to a Reuters report.
The buyback will be offered at $200.41 per share, representing a 5.5% increase from the $189.90 price set about six months ago, when ByteDance was valued at $315 billion.
The buyback, which is anticipated to begin in the autumn, demonstrates ByteDance’s financial robustness in the face of increasing political and regulatory uncertainty.
ByteDance’s revenue jumps 25% in Q2
ByteDance’s latest share buyback at a higher valuation comes as the company strengthens its position as the world’s largest social media firm by revenue, the report said, citing sources.
The company’s second-quarter revenue rose 25% year-on-year to about $48 billion, as per the report, with most of the growth coming from its Chinese operations.
ByteDance continues to face political pressure to divest its US business, but domestic performance has driven robust gains.
The updated valuation, alongside the revenue figures, had not been previously disclosed.
In the first quarter, ByteDance reported revenue of more than $43 billion, surpassing Meta’s $42.3 billion over the same period to become the top social media company globally by sales.
Both ByteDance and Meta maintained revenue growth above 20% in the second quarter, supported by strong advertising demand.
AI and strategic investments
Aside from its social media domination, ByteDance is recognised as one of China’s major leaders in artificial intelligence.
The corporation has spent billions of dollars to acquire Nvidia chips, establish AI infrastructure, and create proprietary models.
These efforts solidify its position as a major player in China’s technology environment, expanding beyond short-form media to basic technologies.
Political pressure over TikTok
Despite revenue growth, ByteDance is facing continuous challenges in the United States, where TikTok’s future remains uncertain.
Last year, Congress approved legislation compelling ByteDance to sell TikTok’s US assets by January 19, 2025, or face a statewide ban.
The app has around 170 million American users, making it a flashpoint in US-China ties.
President Donald Trump extended the divestiture deadline to September and stated that US purchasers are already lined up, while he also hinted that the date could be pushed back further.
Some senators have criticised the extensions, claiming that the administration is overlooking national security concerns stemming from TikTok’s Chinese ownership.
While ByteDance is profitable on a corporate level, TikTok’s US company has been losing money.
Sale talks and possible contingencies
If the sale of TikTok’s US operations goes through, ownership is expected to transfer to a joint venture between an American investor consortium and ByteDance, which would retain a minority stake.
As per media reports, the consortium in the lead for the sale includes existing ByteDance shareholders Susquehanna International Group, General Atlantic, and KKR, along with venture capital firm Andreessen Horowitz.
Blackstone had been part of the group but withdrew after repeated delays in the deal process.
At the same time, TikTok has considered backup plans, such as creating a domestic version of the app specifically for the US, but whether such a plan would go into effect is uncertain, as trade talks between Washington and Beijing continue.
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