ByteDance, the prominent Chinese tech giant responsible for TikTok, is introducing a share repurchase program for its employees located outside the United States (US). According to a source with knowledge of the matter, the company is offering shares at a price of $160 each, mirroring the offer made to its current and former US employees in October.
Targeting a $300 Million Stock Repurchase
The company’s objective is to repurchase at least $300 million worth of stock at this set price, aiming to provide liquidity options for its staff.
Adjustment in ByteDance’s Valuation
With this offer, ByteDance’s latest valuation is estimated at approximately $223.5 billion. This reflects a notable decline of about 26% compared to its valuation a year ago, when it was valued at $300 billion during a similar buyback program for non-US employees.
Increasing Share Price
The current price per share, set at $160, represents an increase from the previous price of $155 in an earlier buyback conducted in April.
ByteDance’s Ongoing Commitment to Employee Benefits
ByteDance has officially confirmed its commitment to this share repurchase plan for its employees located outside the US, as part of its ongoing efforts to offer liquidity options to its dedicated staff. This initiative aligns with the company’s practice of conducting buyback programs twice a year for eligible current and former employees.
Public Offering Plans and Beijing’s Scrutiny
Despite high anticipation for an initial public offering (IPO) from ByteDance in recent years, the company declared in 2021 that it has no immediate plans for an IPO. This decision is attributed to increased regulatory scrutiny of China’s technology giants by the Beijing government.
