ByteDance, TikTok's Parent Company, Reaches $300 Billion Valuation: Sources

ByteDance, the parent company of TikTok, is valuing itself at approximately $300 billion following its recent approach to investors for a share buyback program, according to sources and a document reviewed by Reuters.

In recent weeks, ByteDance offered investors $180.70 per share, marking a 12.9% increase from its previous buyback price of $160 per share. The Wall Street Journal initially reported the valuation.

One source indicated that ByteDance currently has no plans for an IPO, with the buyback program serving as a liquidity solution. This marks ByteDance's third buyback initiative since 2022. In December 2023, the company offered to repurchase approximately $5 billion worth of shares at $160 each, valuing the firm at $268 billion. Another source noted that the buyback program was planned irrespective of the U.S. presidential election outcome.

ByteDance's global revenue grew by 30% last year, reaching $110 billion. However, the company is embroiled in a legal battle over its U.S. operations. A law signed by President Joe Biden in April requires ByteDance to divest TikTok by January 19 or face a ban, citing national security concerns over Chinese ownership. ByteDance and TikTok have filed a federal lawsuit challenging the legislation.

Both ByteDance and TikTok declined to comment on the developments.