TikTok is valued at over $330 billion.

ByteDance plans to continue its employee stock buyback program, a move that has helped the company value itself at over $330 billion.

ByteDance's logo. Photo: Bloomberg .

According to Reuters , ByteDance, the owner of the TikTok app, plans to continue buying back shares from employees. Through this new round of buybacks, the company values ​​itself at $330 billion thanks to continued revenue growth.

ByteDance plans to pay employees $200.41 per share, a 5.5% increase from the $189.90 paid during the acquisition six months ago, which valued the company at approximately $315 billion .

The latest share buyback comes as ByteDance consolidates its position as the world's largest social media company by revenue.

Sources indicate ByteDance's second-quarter revenue reached approximately $48 billion , a 25% increase year-on-year. This figure largely comes from China as the company continues to face pressure to divest from TikTok in the US.

Previously, ByteDance recorded revenue of over $43 billion in the first quarter. For comparison, Meta's revenue during the same period was $42.3 billion . Both maintained growth of over 20% in the second quarter thanks to strong advertising demand.

ByteDance's six-monthly stock buyback program allows employees to sell a certain number of shares, demonstrating a strong balance sheet thanks to its continuously expanding domestic and international business operations.

Unlike initial public offerings (IPOs), Reuters reports that large private companies' frequent share buybacks help retain employees and provide liquidity without divesting.

Currently, many companies like SpaceX and OpenAI use external investment to buy back shares. Meanwhile, ByteDance leverages its own financial resources, demonstrating flexibility and good profit margins.

Beyond the media sector, ByteDance is considered one of China's leading AI companies. The company has invested billions of dollars in Nvidia chips, building infrastructure, and developing its own AI models.

TikTok's logo. Photo: Bloomberg .

Despite higher revenue, ByteDance's valuation is still less than one-fifth of Meta's market capitalization (approximately $1.9 trillion ). The company is under significant pressure from the US government regarding its ownership of the TikTok app.

Last year, the US Congress passed legislation requiring ByteDance to divest its US TikTok subsidiary by January 19, 2025. President Donald Trump has repeatedly extended the deadline for TikTok, most recently allowing it to expire on September 17.

According to Reuters , ByteDance is generally profitable, but TikTok's US operations have so far been loss-making. If a divestment is necessary, the majority of TikTok's US ownership is expected to be transferred to a joint venture with US investors, while ByteDance will retain only a small stake.

Some of the prominent names in the joint venture include current ByteDance shareholders such as Susquehanna International Group, General Atlantic, KKR, and Andreessen Horowitz. Meanwhile, Blackstone withdrew after several delays in the deal.

The recent share buyback from ByteDance could also help boost morale among TikTok employees in the US, who are concerned about the app's future. Rumors suggest TikTok is developing a new app for the US market, although it's unclear whether any progress has been made.

Source: https://znews.vn/chu-so-huu-tiktok-dinh-gia-hon-330-ty-usd-post1580693.html