TikTok parent ByteDance valued at $300 billion as revenue surges 30% to $110 billion
Posted On November 18, 2024
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ByteDance, the parent company of TikTok, has set its valuation at approximately $300 billion. The news comes after the company recently approached investors with a share buyback offer, according to sources and a document reviewed by Reuters.
The proposed buyback price is $180.70 per share, marking a 12.9% increase from the previous buyback price of $160. ByteDance was last valued at $268 billion in December 2023 after the company executed a buyback program worth approximately $5 billion, offering $160 per share. Seven months earlier, Abu Dhabi-based AI firm G42 acquired a $100 million-plus stake in the company at a $220 billion valuation.
The valuation increase was first reported by The Wall Street Journal. While the company has no plans to go public, the buyback program is designed to provide liquidity to ByteDance and its investors. This marks the company’s third share buyback initiative since 2022.
Sources told Reuters that the latest program was set in motion regardless of the political landscape, including the U.S. presidential election. ByteDance declined to comment on the latest valuation or buyback program.
ByteDance’s global revenue jumped 30% last year to $110 billion. Despite this growth, the company faces significant legal hurdles in the U.S. over TikTok’s ownership. A law signed by President Joe Biden in April mandates ByteDance to divest TikTok’s U.S. operations by January 19 or face a potential ban. The White House has emphasized removing Chinese ownership on national security grounds while opposing a direct ban on the app.
In May, ByteDance and TikTok filed a lawsuit in U.S. federal court to challenge the new law.
Founded in 2012 by Zhang Yiming, ByteDance has developed a portfolio of apps, including TikTok and its Chinese counterpart, Douyin. These platforms leverage machine learning to deliver personalized content, connecting users to creators worldwide.
The company’s products have gained massive traction, with over 200 million daily active users spending about an hour daily on its platforms. Beyond TikTok, ByteDance operates other popular apps such as TopBuzz and Flipagram, catering to mobile users globally.