TikTok owner prepares major share buyback at higher valuation
Chinese tech company ByteDance, which owns TikTok, plans to buy back shares from current investors for up to $6 billion. Under the new program, the company is valued at approximately $400 billion — 20% higher than during the previous buyback.
The Information reported this on November 12, citing a letter from ByteDance to shareholders and a source familiar with the company's plans.
Under the proposed terms, ByteDance is willing to pay $241.35 per share. During a similar program in November last year, the price was $200.41.
The program will allow investors to sell part of their stakes without having to wait for ByteDance's stock market debut. The company remains private, and there are still no specific dates for a possible IPO.
As reported by Bloomberg, ByteDance also proposed extending to December 2030 the deadline by which the company must go public or grant external shareholders the right to demand buyback of their stakes. Previously, the respective deadline expired in December 2026.
Simultaneously, ByteDance is enhancing reward programs for employees involved in artificial intelligence. The company plans to offer them tools linked to the value of its AI business to retain specialists amid growing competition.
The increase in ByteDance's valuation comes after resolving the dispute over TikTok's future in the US. In January, the company completed a deal with the US administration that allowed it to avoid a ban on the app in that market.
However, the final terms of the new buyback program may still change. ByteDance representatives have not publicly confirmed the reported parameters of the deal.
Materials: The Information, Bloomberg
