TikTok's parent ByteDance is now valued at $300 billion
ByteDance, the parent company of popular social media app TikTok, has now reached a valuation of about $300 billion. The company hit the milestone after a recent share buyback offer, The Wall Street Journal reported. The news comes amid continued uncertainty over possible US restrictions on TikTok's operations.
Latest share buyback program
ByteDance has launched its third share buyback program, a practice it started in 2022. The company recently notified investors of its plans to repurchase shares at around $180 apiece. The latest offer marks a 12.9% increase from the last per-share price of $160 during its previous buyback effort.
ByteDance's valuation and US political landscape
In December 2023, ByteDance had offered to buy back some $5 billion worth of stocks from investors at a price of $160 apiece. The move had given the company a whopping $268 billion valuation. The recent US political developments, including President-elect Donald Trump's return to office, are viewed by ByteDance investors as a possible boon for TikTok's future in the country.
Trump's stance on TikTok and legal challenges
In June, during a Bloomberg BusinessWeek interview, Trump voiced his support for TikTok saying, "I'm for TikTok because you need competition. If you don't have TikTok, you have Facebook and Instagram." The statement was a departure from his earlier position where he termed TikTok a national security threat. However, ByteDance is now battling legal issues over its US assets and has until January 19 to divest its TikTok stake or face ban under a law signed by President Joe Biden.
ByteDance's financial performance and future plans
Despite these challenges, ByteDance has shown strong financial performance with its global revenue growing by 30% last year to $110 billion. The company has no immediate plans for an initial public offering (IPO), sources said. The ongoing share buyback program is seen as a strategy to keep liquidity within the company.
