ByteDance, the parent company of the popular short video app TikTok, is extending an offer to buy back shares from its employees situated outside the United States at a rate of $160 per share, according to a reliable source as of Wednesday. This initiative has also been officially confirmed by ByteDance.
This share repurchase offering mirrors a similar deal that ByteDance presented to both current and former employees in the United States back in October. Reports from Reuters disclosed the company’s intent to acquire a minimum of $300 million worth of stock, valuing each share at $160.
This new price point represents a 26% decrease compared to the company’s valuation a year ago, placing ByteDance’s estimated worth at $223.5 billion. Notably, in the previous year, ByteDance boasted a $300 billion valuation in a buyback program for its non-U.S. employees.
It’s important to note that this latest $160 per share offering surpasses the $155 price set during an earlier buyback initiative in April, indicating the company’s commitment to ensuring an equitable proposition for its staff.
A spokesperson from ByteDance has confirmed the company’s intent to facilitate share repurchases for employees located outside the United States. The primary objective of this program is to provide liquidity options for its workforce. ByteDance has regularly extended buyback opportunities biannually to both existing and former staff members since 2017.
By allowing employees to cash in their shares, ByteDance seeks to offer a means of obtaining value without being contingent upon the company’s eventual stock market listing. An initial public offering for ByteDance has long been anticipated, but the company has consistently indicated since 2021 that it currently lacks imminent plans for an IPO. This stance aligns with the backdrop of increased regulatory scrutiny faced by China’s technology giants in the eyes of Beijing.
