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ByteDance Sets Valuation Above $330 Billion as Revenue Surges

Prime Highlights

  • ByteDance is launching a new employee share buyback program valuing the company at over $330 billion, underscoring its strong financial performance despite political pressures.
  • The company’s Q2 revenue surged 25% year-on-year to $48 billion, overtaking Meta’s $42.3 billion in the same period.

Key Facts

  • Employees will be offered $200.41 per share, 5.5% higher than the rate six months ago, valuing the company at about $315 billion.
  • The S. divestment deadline for TikTok has been extended to September 17, 2025, while American investors explore acquiring TikTok’s U.S. business.

Background

The owner of TikTok, ByteDance, is planning a new share buyback programme for employees, that will create a valuation of the company of over $330 billion dollars, according to people familiar with the matter. The higher valuation reflects the Chinese tech giant’s strong revenue growth despite mounting political challenges overseas.

The company will provide employees with a payment of $200.41 per share, which is 5.5% above the rate it offered the employees six months ago, equating the company to approximately $315 billion. The buyback is expected to roll out in the autumn, giving staff a chance to cash out part of their holdings.

In the second quarter, ByteDance reported $48 billion in revenue, up 25% year-on-year, overtaking Meta’s $42.3 billion during the same period. While much of its earnings come from China, TikTok remains a major driver of global growth.

Nevertheless, the U.S. market is challenging. The legislators have insisted that the company, ByteDance, should sell the American business of TikTok due to security reasons. The divestment deadline, originally planned to take place in January, has since been extended to September 17, 2025, and may be further extended.

TikTok has about 170 million users in the U.S., but its operations there continue to run at a loss. Reports indicate that American investors, including General Atlantic, KKR, and Andreessen Horowitz, are exploring a deal to acquire TikTok’s U.S. arm, with ByteDance likely retaining a small stake.

The new buyback plan will also help in restoring confidence in the employees at this time of uncertainty, since it will prove that politics will not stop the financial might of the company, which is still strong, in the hands of the employees.
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