Beijing, China – ByteDance, the parent company of the globally popular short video app TikTok, is extending an offer to repurchase shares from its international employees at a rate of $160 per share, as confirmed by company sources on Wednesday.
This move mirrors a prior offer the tech giant extended to its current and former employees within the United States during October. A Reuters report had previously indicated ByteDance’s intent to repurchase at least $300 million worth of shares at the same $160 per share rate, effectively valuing the company at $223.5 billion. This valuation marks a 26% decline from the preceding year when ByteDance had been appraised at $300 billion in its buyback initiative for non-U.S. staff.
It’s noteworthy that the recent $160 offer stands above the $155 share price set in an earlier buyback operation conducted in April, according to insiders familiar with the matter.
A spokesperson from ByteDance has officially affirmed the company’s intent to engage in this share repurchase program for its international employees. ByteDance’s motive behind such programs is to furnish its staff with opportunities for liquidity and facilitate investment in company shares. Notably, ByteDance has consistently presented buyback opportunities for eligible current and former personnel bi-annually since 2017.
Share buyback programs are a means by which employees can convert their company-held shares into cash, circumventing the necessity of waiting for the company’s potential stock market listing. Despite the long-anticipated expectations of a ByteDance initial public offering (IPO), the company has conveyed since 2021 that it has no imminent IPO plans. This decision is attributed to heightened regulatory scrutiny by the Chinese government of the nation’s technology giants.