TikTok owner ByteDance to buy back US staff shares at higher $417 billion valuation
Sign up now: Get ST's newsletters delivered to your inbox
Investors have marked up ByteDance in recent months despite a US edict forcing a sale or blockade of TikTok..
PHOTO: AFP
Follow topic:
HONG KONG – ByteDance plans to buy back employee stock at a valuation of about US$312 billion (S$417 billion), a significant mark-up from previous levels that reflects a brightening outlook for Chinese tech shares.
TikTok’s owner is offering US staff about US$189.90 a share, according to a person familiar with the deal. That is up from about US$181 in a similar proposal from about six months ago, the person said, asking not to be identified discussing an internal decision.
Investors have marked up ByteDance in recent months despite a US edict forcing a sale or blockade of TikTok. They have piled into Chinese tech stocks in 2025, after DeepSeek’s explosive global debut
Chinese President Xi Jinping’s public endorsement of tech firms in February also dangled the prospect of government support for an industry deemed crucial to reversing economic malaise and driving independence from American technology.
At least three of ByteDance’s major investors – SoftBank Group, Fidelity Investments and T. Rowe Price Group – raised their internal assessments to more than US$400 billion. Representatives for ByteDance did not respond to an e-mail seeking comment on the latest transaction, which Reuters first reported.
During ByteDance’s annual share buyback in 2024, the offer price was set at roughly US$180 per share, which represents US$300 billion in value, Bloomberg News has reported. That is an increase from the US$268 billion valuation applied for buybacks in 2023.
While many investors remain focused on the geopolitical risks facing TikTok’s US business, others factored in ByteDance’s strength in artificial intelligence. Its chatbot Doubao has 75 million regular active users, while the company has touted an earlier vision-understanding model as 85 per cent cheaper than the industry average price, not unlike DeepSeek.
As for the US ban on TikTok, US President Donald Trump postponed its enforcement for 75 days to give ByteDance the opportunity to explore its options and directed Vice-President J.D. Vance to oversee the process.
The company has since been in discussions with the administration to develop a plan that would allow it to continue operating in the US. The latest share buyback programme could help boost morale among US-based employees, some of whom have been concerned about the app’s uncertain future and the lack of a clear contingency plan. BLOOMBERG, REUTERS
