(CTN News) – As a result, China’s ByteDance, the parent company of the short video app TikTok, has reportedly offered to buy back shares from its employees outside the United States for $160 per share, a source familiar with the matter told Business Insider on Wednesday, a plan which the company has confirmed.
As reported by Reuters, the company has offered to buy at least $300 million of restricted stock at $160 per share, which amounts to about $300 million in total.
Earlier this year, the company announced it was offering to buy stock from current and former US employees for $160 per share, the same price it offered to current and former US employees.
According to the Reuters report, the valuation of the company based on its recent share price was $223.5 billion, which represents a drop of about 26% from the valuation a year earlier, based on the company’s recent share price.
Last year, TikTok ByteDance offered $3 billion in stock buybacks to its employees outside the United States as part of a buyback program it offered to its employees.
The person said that the $160 price, which has been set earlier this month in connection with a buyback, is higher than the $155 price that had been set earlier this month.
During a recent conference call, a TikTok ByteDance spokesperson confirmed that the company would offer share buybacks to its employees outside the United States, saying that such programs would provide liquidity options to its workforce.
Since 2017, the TikTok company has offered a buyback program twice a year to eligible current and former employees who are eligible to participate.
It allows employees to cash out their shares without waiting for the company to be listed on the stock exchange before they can cash in.
There has been heightened scrutiny of Chinese technology giants by Beijing for the past few years, which has made the prospect of an initial public offering for TikTok ByteDance highly anticipated.
However, the company has said since 2021 it has no imminent plans to do so.