Tiktok owner ByteDance offers to buy back $3B in outstanding shares

TikTok owner ByteDance Ltd. could spend as much as $3 billion to buy back shares from investors after the company scrapped plans to go public this year. The Wall Street Journal reported on Friday, citing a memo sent to ByteDance investors.

The China-based company offered to buy back investors’ existing shares for up to $176.94 per share. WSJ.

Although the company did not give a reason for the share buyback in its memo, the move would provide liquidity to some of its long-term shareholders and offer some reward for the scrapped IPO plans. WSJ reported.

ByteDance indefinitely shelved plans for an initial public offering in the US or Hong Kong in July after officials in China warned management to address data security risks, with founder Zhang Yiming making the decision after meetings with regulators. reported back then. The company was then thought to be valued at $180 billion, according to its most recent funding round in December.

ByteDance did not respond Billboard‘s request for comment at the time of publication.

If the $3 billion Bytedance budgeted for the share buyback isn’t enough to meet investor demand, the company will buy back an equal share of shares from each, according to WSJ.

Chinese authorities have increased scrutiny of technology companies since late 2020 in an effort to crack down on what they perceive as monopolies. It has also introduced new rules on data collection and cyber security.


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