ByteDance plans S$8.4 billion share buyback at US$400 billion valuation

TikTok-owner ByteDance is planning to buy back up to US$6 billion (S$8.4 billion) of shares from existing investors at a valuation of about US$400 billion, according to a report by The Information. Reuters could not immediately verify the report.

TikTok-owner ByteDance is planning to buy back up to US$6 billion worth of shares from existing investors at a valuation of about US$400 billion, The Information reported on 12 Nov, citing a letter to shareholders and a person familiar with the plans. Reuters could not immediately verify the report.

The Chinese technology company, which owns the popular short-video platform TikTok, is offering to repurchase shares from current investors at the US$400 billion valuation. The buyback plan would see ByteDance spend up to US$6 billion to acquire stakes from existing shareholders.

The reported valuation of US$400 billion represents a significant premium over the company's previous valuation of about US$300 billion during a buyback in 2023. ByteDance has been exploring various corporate restructuring options amid ongoing regulatory scrutiny of TikTok's operations in the United States and other markets.

The Information's report did not specify a timeline for the buyback or indicate which investors might participate. ByteDance's major shareholders include global investment firms and venture capital funds that have backed the company since its early days.

ByteDance has not publicly commented on the report. The company has conducted similar share buybacks in the past as part of its capital management strategy, allowing early investors to realise returns on their investments.