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ByteDance, Parent Company Of TikTok, Plans a $268 Billion Share Buyback Program.

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ByteDance, Parent Company Of TikTok, Plans a $268 Billion Share Buyback Program.

(CTN News) – According to a source familiar with the matter, ByteDance, the parent company of TikTok, is planning to allocate up to $5 billion to repurchase its stock.

This move comes as one of the world’s most valuable startups aims to provide an opportunity for shareholders to sell their holdings.

The company is offering $160 per share, which values ByteDance at approximately $268 billion. Although there is no specified timeline for the completion of the share repurchases, ByteDance has reached out to shareholders to gauge their interest in participating in the program. ByteDance has chosen not to provide any comments regarding this matter.

Private companies frequently use buybacks as a means for shareholders to profit from their initial investments, particularly in the absence of a liquidity event such as an initial public offering or acquisition.

Within a month of ByteDance’s offer to repurchase restricted stock units (RSU) or options from its employees at $160 per share, the company has initiated its most recent round of buybacks for shareholders.

Despite being founded in 2012, ByteDance has encountered numerous challenges and uncertainties in its journey towards going public, which has been anticipated for several years.

TikTok, the widely popular app from the Chinese tech giant, has come under scrutiny from lawmakers worldwide, especially in the United States. Critics have raised concerns about the safety of American data on the platform.

Additionally, ByteDance, the parent company of TikTok, is downsizing its gaming division by eliminating hundreds of jobs. Despite its aggressive expansion efforts, the company has not achieved success in this sector.

The firm has been adversely affected by the slowdown in the Chinese economy and the stricter regulations imposed on the internet industry domestically.

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