TikTok owner ByteDance's valuation tops $330B via employee share buyback
What's the story
ByteDance, the parent company of TikTok, is gearing up for a new employee share buyback. The move would value the Chinese tech giant at over $330 billion. The decision comes after a strong revenue growth in the second quarter, with sales rising by 25% year-on-year to some $48 billion. The company's China business has mainly driven this growth.
Buyback details
Share buyback to take ByteDance's valuation to new heights
ByteDance plans to buy back shares at $200.41 each, a 5.5% increase from the $189.90 price offered six months ago. At that time, the company was valued at around $315 billion. The upcoming buyback is likely to happen this autumn, further increasing ByteDance's valuation as it strengthens its position as the world's largest social media company by revenue.
Revenue comparison
ByteDance surpassed Meta as the top revenue-generating social media company
In Q1, ByteDance's revenue exceeded $43 billion, surpassing Meta's $42.3 billion. This made ByteDance the top social media company by sales. Both companies continued to grow their revenues by over 20% in Q2, thanks to strong advertising demand. The impressive financial performance has allowed ByteDance to fund its biannual buybacks from its own balance sheet rather than relying on outside investors.