This buyback program from ByteDance represents the third one currently, and it should be mentioned that the company also conducted the shared buybacks since 2022.
In December 2023, ByteDance also proposed to have investors buy around $5 billion worth of shares. After this program, the ByteDance value was recorded at $265 billion.
The social media platform’s parent company revenue recorded an increase of 30% last year to $110 billion and has recently faced some legal issues about U.S. assets.
So, back in April, former President Joe Biden signed a bill that stated that TikTok would be banned in the United States if the ByteDance company failed to sell the social media platform. Back then, the government gave nine months to TikTok’s parent company to make the sale and the president extended the deadline by an extra three months.
But after the recent elections in the U.S., Donald Trump scheduled a meeting about the social media platform ban with a major ByteDance investor, which seems to be a saving grace of the company’s U.S. market future.
The TikTok valuation and also ByteDance’s value is now raised at $300 billion. Also, ByteDance’s decision to repurchase the shares is able to demonstrate the company’s confidence in its growth potential while offering liquidity to investors and early employees.
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