China’s ByteDance aims to spend up to $3 billion on a share buyback, in a deal that values the TikTok owner at about $300 billion, according to a company memo to investors seen by Reuters on Friday.
The buyback is primarily intended to help some of its shareholders improve their liquidity position, said a person with direct knowledge of the plan. ByteDance is not listed on a stock exchange.
The company considered holding an initial public offering (IPO) in Hong Kong, sources said, although it said in April last year that it had no imminent plans to go public.
The company’s board will present the buyback proposal, which values its shares at up to $176.90 each, to its shareholders later this month and plans to complete the transaction within the next two to three months, the source said.
Recent trades in the secondary private equity market valued ByteDance at $300 billion or less, the source and another person with knowledge of the matter said.
That compares with valuations of between $300 billion and $400 billion the company received on the secondary market last year. Even at $300 billion, the company is one of the most valuable privately held companies in the world, according to CB Insights.
In addition to TikTok, ByteDance’s other successful apps include its Chinese counterpart Douyin and news aggregator Jinri Toutiao. In 2021, users spent approximately $2.3 billion on TikTok and the iOS version of Douyin, according to Sensor Tower.
(By Yingzhi Yang and Brenda Goh)
Source: CNN Brasil
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
