The valuation of TikTok owner ByteDance has been raised to $330 billion as the popular social media app’s sales continue to accelerate.
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ByteDance, the privately held Chinese owner of short-form video app TikTok, set the higher valuation as it prepares to launch an employee share buyback program. The company plans to offer employees a price of $200.41 per share in the repurchase program. The buyback is expected to take place this autumn.
Six months ago, ByteDance was valued at $315 billion. The higher valuation is the result of 25% year-over-year revenue growth at the company, according to ByteDance. The company’s second-quarter revenue totaled $48 billion, with most of the sales coming from its home market of China.
U.S. Divestment
The growth of ByteDance is outpacing main U.S. social media rival Meta Platforms (META). However, ByteDance’s valuation remains less than a fifth of Meta’s $1.9 trillion market capitalization. The new valuation comes as ByteDance faces intense pressure in Washington, D.C., where lawmakers have raised national security concerns over TikTok’s Chinese ownership.
Congress last year passed a law requiring ByteDance to divest TikTok’s U.S. assets or face a nationwide ban of the app, which has 170 million users in America. President Donald Trump has granted TikTok multiple reprieves, and last week extended the deadline for the company to divest its U.S. assets after the White House opened an official TikTok account.
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