The Wall Street Journal reports that ByteDance’s latest business valuation has reached a staggering $300 billion, the highest in the company’s history. This increase was attributed to the company buying back shares from existing shareholders in the latest round.
In recent times, ByteDance has seen a rise in business valuation through share buybacks. In October 2023, they repurchased shares from employees worth $225 billion and made another buyback in December worth $268 billion. This buyback strategy is aimed at managing liquidity for shareholders who wish to sell shares for cash when the company’s IPO plans are still uncertain, as in the case of ByteDance.
In addition to owning TikTok, ByteDance also owns several internet platforms in China. However, its main business, TikTok, faces pressure, especially with the app bans in the United States. These bans require ByteDance to either sell its business or risk the app being banned, which will have implications next year. It remains unclear whether President Donald Trump will maintain this directive.
ByteDance remains a unicorn startup yet to enter the world’s highest-valued stock market, according to the latest data from Crunchbase.
Source: The Wall Street Journal
TLDR: ByteDance’s business valuation hits $300 billion, driven by share buybacks, as the company faces uncertainty regarding its IPO plans and TikTok’s future amidst regulatory pressures.
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