ByteDance’s Value Could Soon Exceed $330 Billion

ByteDance, the owner of the TikTok app, driven by continuous revenue growth, is preparing to launch a new employee stock buyback program that will elevate the value of the Chinese tech giant to over $330 billion.

According to reports from U.S. media, the company plans to offer existing employees $200.41 per share, which is an increase of 5.5 percent compared to $189.90 per share that it offered about six months ago when ByteDance was valued at approximately $315 billion.

The latest buyback program at a higher value is expected in the fall, at a time when ByteDance is solidifying its position as the largest social media company in the world by revenue. In fact, the company saw revenues in the second quarter that were 25 percent higher compared to the same period last year. Of course, a large portion of these revenues, totaling around $48 billion, comes from the Chinese market, as the company still faces political pressure to sell its business in the U.S.

In the first quarter, ByteDance’s revenue rose to over $43 billion, placing it at the top of the rankings of companies in the social media segment, just behind Meta with $42.3 billion during that period. Both companies maintained sales growth above 20 percent in the second quarter, supported by strong demand for advertising.

Ban in the U.S.

It is increasingly common for late-stage private companies to offer their employees a buyback of company shares in order to retain and ensure liquidity without going public and relying on external capital. This is a signal of the financial flexibility and healthy margins of this company, unlike SpaceX and OpenAI, which continuously rely on investors for their own financing.

ByteDance is also considered one of the leading Chinese companies in the field of artificial intelligence, having invested billions of dollars in purchasing Nvidia chips, building AI-related infrastructure, and developing its own models.

Despite surpassing Meta in revenue this year, ByteDance’s valuation remains less than one-fifth of Meta’s market capitalization of approximately $1.9 trillion, a gap that analysts largely attribute to political and regulatory risks in the U.S.

It is worth noting that ByteDance is facing intense pressure in Washington, where lawmakers have expressed national security concerns regarding Chinese ownership.

Congress passed a law last year requiring ByteDance to divest its U.S. TikTok assets by January 19, 2025, or face a national ban on the app, which has 170 million American users. President Donald Trump granted TikTok several extensions, and last week extended the deadline for the company to sell its U.S. assets to September 17. He stated that American buyers are ready for TikTok and that the deadline could be postponed again.

Potential Standalone App

Some lawmakers criticized the delay, claiming that his administration is violating the law and ignoring national security issues related to Chinese control over TikTok. ByteDance is profitable as a company, but TikTok’s U.S. operations have so far been operating at a loss.

If the sale of TikTok’s U.S. business is finalized, it is expected to be owned by a joint venture formed by a consortium of American investors and ByteDance, which will retain a minority stake. The consortium, which has emerged as the leading candidate, includes current ByteDance shareholders Susquehanna International Group, General Atlantic, and KKR, as well as Andreessen Horowitz, Reuters reported. Blackstone recently withdrew from the consortium after several delays in the agreement’s timeline.

ByteDance’s new buyback could help boost morale among U.S.-based employees, some of whom are concerned about TikTok’s uncertain future. However, the company is also working on preparing a potential standalone app for American users, sources previously told Reuters, although it remains unclear whether any contingency plans will be finalized amid Trump’s ongoing trade negotiations with Beijing.