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HomeBig TechByteDance’s valuation down 26 per cent in latest stock buy-back: report

ByteDance’s valuation down 26 per cent in latest stock buy-back: report

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TikTok owner ByteDance’s valuation down 26 per cent to US$223.5 billion in stock buy-back from US employees, report says

ByteDance is looking to buy at least US$300 million worth of stock from current and former US employees at US$160 per share, according to The InformationWhile TikTok continues to face political scrutiny in the US, its owner saw first-quarter profit nearly double to US$6 billion, The Wall Street Journal reportedByteDanceReutersPublished: 12:19pm, 3 Oct, 2023Why you can trust SCMP

ByteDance is buying back shares from US employees in a deal that values the TikTok parent company at US$223.5 billion, about 26 per cent lower than the valuation it hit in a similar transaction a year earlier, the Information reported on Monday.

The company is looking to buy at least US$300 million worth of stock from current and former US employees, the report said, citing two people with direct knowledge of the situation.

ByteDance did not immediately respond to a Reuters request for comment outside of normal business hours.

Several start-ups have had to take a cut to their valuations, as the pandemic-era exuberance of 2020 and 2021 in the private investment market due to accommodative monetary policy and easy capital that had led to unsustainable spikes waned.

TikTok sends team to Indonesia as new law threatens e-commerce aspirations

The deal comes at a time when ByteDance-owned short video app TikTok has been facing growing calls for a nationwide ban from some US lawmakers over concerns about potential Chinese government influence over it. ByteDance has denied the allegations.

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