TikTok is valued at more than $330 billion

ByteDance plans to continue its employee stock buyback program, a move that would value the company at more than $330 billion.

ByteDance logo. Photo: Bloomberg .

TikTok owner ByteDance plans to resume its employee stock buybacks, valuing the company at $330 billion as revenue continues to grow, Reuters reported.

ByteDance plans to pay employees $200.41 per share, up 5.5% from the $189.90 paid in the buyback six months ago, which valued the company at about $315 billion .

The new share buyback comes as ByteDance consolidates its position as the world's largest social media company by revenue.

ByteDance’s second-quarter revenue was about $48 billion , up 25% from the same period last year, the source said, with much of that coming from China as the company continues to face pressure to divest TikTok in the US.

Previously, ByteDance recorded a revenue of more than $43 billion in the first quarter. For comparison, Meta's revenue in the same period was $42.3 billion . Both maintained a growth momentum of more than 20% in the second quarter thanks to large advertising demand.

ByteDance's six-monthly share buyback program allows employees to sell some shares, reflecting a healthy balance sheet thanks to continued expansion of its domestic and international businesses.

Unlike initial public offerings (IPOs), Reuters said that large private companies often buy back shares to retain and provide liquidity to employees without having to divest.

Currently, many companies like SpaceX and OpenAI use outside investment to buy back shares. Meanwhile, ByteDance leverages its own financial resources, showing flexibility and healthy profit margins.

Not only in the media field, ByteDance is considered one of the leading AI companies in China. This enterprise invests billions of dollars to buy Nvidia chips, build infrastructure and develop its own AI models.

TikTok logo. Photo: Bloomberg .

Despite higher revenue, ByteDance's valuation is still less than a fifth of Meta's market capitalization (about $1.9 trillion ). The company is under intense pressure from the US government , related to its ownership of the TikTok app.

Last year, the US Congress passed a law requiring ByteDance to divest its US subsidiary TikTok by January 19, 2025. President Donald Trump has repeatedly extended TikTok’s deadline, most recently extending it to September 17.

Reuters sources said that ByteDance is generally profitable, but TikTok's US operations have so far been loss-making. If it is divested, the majority of TikTok US ownership is expected to be transferred to a joint venture with US investors, while ByteDance will only hold a small stake.

Some of the prominent names in the consortium include current ByteDance shareholders Susquehanna International Group, General Atlantic, KKR and Andreessen Horowitz. Meanwhile, Blackstone withdrew after the deal was repeatedly delayed.

The new ByteDance buyback could also help boost morale among TikTok employees in the US, who have been concerned about the app’s future. TikTok is rumored to be working on a new app for the US market, though it’s unclear whether those plans have progressed.

Source: https://znews.vn/chu-so-huu-tiktok-dinh-gia-hon-330-ty-usd-post1580693.html