TikTok Parent Looks To Buy Back $3B Shares As Its IPO Failed To Materialize

TikTok Parent Looks To Buy Back $3B Shares As Its IPO Failed To Materialize
  • ByteDance Ltd aims to spend up to $3 billion to repurchase shares in a deal valued at $300 billion, Reuters reports citing an internal company memo.
  • ByteDance also extended its existing stock incentive plan for another ten years, Bloomberg reports.
  • The move will likely help some of its shareholders improve their liquidity positions.
  • The TikTok parent had reportedly explored conducting an initial public offering in Hong Kong in August, while the company clarified it had no such plans.
  • ByteDance's board will put the proposal, which values its shares at up to $176.9 a piece to its shareholders at the end of this month and plans to carry out the buyback in the next two to three months.
  • Recent trades in the private equity secondary market valued ByteDance at $300 billion or lower, down from 2021's valuation of $300 billion - $400 billion.
  • Slower economic growth, primarily due to COVID curbs, and Beijing's regulatory crackdown on the tech sector weighed on the earnings prospects for many Chinese internet firms.
  • In 2021, users spent $2.3 billion on TikTok and the iOS version of Douyin, according to Sensor Tower.
  • Earlier, ByteDance slashed the price of its stock options for talented employees and attracted good hires.
  • Recently, a report suggested that TikTok and Meta Platforms Inc META Facebook tracked user data via in-app browsers.
  • Photo by Olivier Bergeron via Unsplash

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