^{Photo: South China Morning Post}

ByteDance, the parent company of the popular short-video platform TikTok, is set to launch a new employee share buyback program that values the company at more than $330 billion, according to insiders. This represents a significant increase from its previous valuation of roughly $315 billion just six months ago. The repurchase program will offer current employees $200.41 per share, up 5.5% from the $189.90 offered in the last buyback, and is expected to be rolled out this autumn.

Record Revenue Growth

The latest valuation reflects ByteDance’s rapid growth, cementing its status as the world’s largest social media company by revenue. In the second quarter, the company’s revenue jumped approximately 25% year-on-year, reaching $48 billion, driven primarily by the Chinese market. This follows first-quarter revenue of over $43 billion, surpassing Meta’s $42.3 billion in the same period. The company’s strong advertising demand and expanding international footprint continue to fuel this growth.

ByteDance’s consistent revenue growth highlights its financial stability, with robust margins that allow it to fund buybacks from its own balance sheet, a practice increasingly rare among late-stage private tech firms. Its investments in AI, including billions spent on Nvidia chips and proprietary AI infrastructure, further reinforce its leading position in the tech industry.

Employee Buybacks and Retention

The biannual buyback program enables ByteDance employees to cash out part of their holdings, providing liquidity without an initial public offering. Between 3% and 5% of eligible employees have historically participated, reflecting both confidence in the company’s long-term prospects and the desire for financial flexibility. Executives view the buyback as a tool to maintain morale amid regulatory uncertainties, especially in the U.S., where TikTok’s future remains unclear.

TikTok U.S. Sale and Regulatory Pressure

ByteDance continues to navigate significant challenges in the United States. Congress passed legislation last year requiring ByteDance to divest TikTok’s U.S. operations by January 19, 2025, or face a nationwide ban. TikTok has 170 million users in the U.S., and the app’s American business has so far been loss-making.

President Donald Trump recently extended the divestment deadline to September 17, citing ongoing negotiations with potential U.S. buyers. The proposed sale would see TikTok’s U.S. operations transferred to a joint venture led by American investors including Susquehanna International Group, General Atlantic, KKR, and Andreessen Horowitz, while ByteDance retains a minority stake. Blackstone, initially part of the consortium, withdrew following delays in the deal’s timeline.

ByteDance has also explored creating a standalone TikTok app for U.S. users as a contingency plan, although details remain unclear. The company’s focus on buybacks and domestic revenue growth demonstrates a strategy to maintain employee confidence and operational stability amid geopolitical and regulatory challenges.

Looking Ahead

With global revenues surging and employee incentives in place, ByteDance is positioning itself to maintain dominance in the social media and AI sectors. Despite facing political pressures in the U.S., the company’s growing valuation and strategic investments in technology underscore its resilience and long-term growth potential. Analysts see ByteDance’s combination of robust revenue, internal liquidity strategies, and AI leadership as key drivers that could help it rival larger publicly traded competitors like Meta, even under ongoing international scrutiny.