Heaptalk, Jakarta — ByteDance, the Chinese company that owns TikTok, has announced that it has reached a valuation of $300 billion, approximately Rp4,752 trillion, claiming itself as one of the highest-valued technology firms in China.
Following the matter, Reuters reported that ByteDance has recently engaged with investors over the past week to propose a share buyback initiative. The Chinese tech giant is offering a price of approximately $180.70 per share, marking a 12.9% increase from the $160 per share price set during its previous buyback round.
According to a report in The Wall Street Journal (WSJ), ByteDance’s valuation surfaced in its latest buyback offer. Notably, the company’s valuation has shown a consistent upward trajectory, reaching nearly $225 billion during a tender offer to employees in October last year. By December 2023, ByteDance had further elevated its valuation to an impressive $268 billion through another buyback initiative.
Nevertheless, an anonymous insider disclosed that the company has no plans to pursue an IPO shortly. The source emphasized that this third share buyback is a deliberate strategy designed to bolster the liquidity of its assets.
High valuation amidst TikTok ban in the US
Several months ago, ByteDance TikTok threatened to be banned in the United States following the accusation of the superpower to TikTok’s parent company regarding the data collection of its users in the US.
In March, before President Biden officially signed it in April 2024, the policymaker passed this law by obtaining around 352 votes to 65, which stated the urgency of blocking TikTok if ByteDance still avoids diversifying its shares to the US company within the next six months after this bill was passed. The legislation provides TikTok with nine months to divest from its parent company, ByteDance, which is estimated to be worth US$50 billion, or be shut down from the US market in 2025.
“We are not going anywhere. We are confident and will keep fighting for your rights in the courts,” said Shou Chew, the CEO of TikTok.
TikTok has consistently asserted that it neither intends nor can be sold. In 2020, following an order from former President Trump mandating the platform’s sale, China amended its export control regulations to encompass two key technologies integral to TikTok, effectively obstructing any potential divestment of the app.
While Trump also called for a TikTok ban during his first term, he subsequently posted that he would save the ByteDance app in America. Thus, TikTok’s outlook in the United States might improve in light of Donald Trump securing a second presidential term.
Nevertheless, ByteDance has experienced a fantastic enhancement recently, becoming one of the most valuable companies worldwide. TikTok’s parent company revenue climbed to nearly US$120 billion last year, compared to the former, which was only US$80 billion in 2022.
