ByteDance Ltd, the parent company of social media video platform TikTok, is offering to buy back up to $5 billion of its shares from investors even before it goes public, Bloomberg reported on Wednesday, citing people familiar with the matter.
The new buyback bid is worth $160 per share, valuing the company at around $268 billion, the same level as ByteDance offered to employees in November but about 11% less than the company offered to investors in 2022, the media outlet noted.
The valuation would still make it among the 40 most valuable public companies in the world.
ByteDance’s plans for an initial public offering (IPO) have faced a series of setbacks, including India banning the TikTok app in 2020, as well as from some Washington politicians who see it as a potential national security threat.
The company's push into gaming and virtual reality, meanwhile, have proven unsuccessful, leading ByteDance to focus more of its efforts on its core business: TikTok and its China twin Douyin.
ByteDance's revenue rose 30% year over year to exceed $80 billion in 2022.
Contact Sean at sean@proactiveinvestors.com