Investing.com -- ByteDance, the parent company of TikTok, has initiated a new share repurchase program for its U.S. employees at an increased valuation. The company is offering to buy back shares at $189.90 per share, marking an 11% increase from the per share price of $171 a year ago and $181 six months ago, according to Reuters, citing sources familiar with the matter.
The new share price could potentially value ByteDance at approximately $315 billion, indicative of the company’s recovery from a valuation drop in 2023. This valuation reflects the strength of ByteDance’s balance sheet, which has been fortified by its growing domestic and global businesses.
Despite the success of its popular short video-sharing app, TikTok, ByteDance continues to face potential threats in the U.S. market. Last year, Congress passed a law citing national security concerns, requiring ByteDance to divest TikTok by Jan. 19 or face a ban in the United States.
The app, which is used by 170 million Americans, briefly shut down in the U.S. just hours before the ban was set to take effect. However, the service resumed after President-elect Donald Trump offered a temporary reprieve. Trump delayed the enforcement of the ban for 75 days, allowing ByteDance time to explore its options. Vice President JD Vance was appointed to oversee the process.
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