TikTok dad or mum ByteDance presents share buyback valuing the Chinese language big at $268 billion

TikTok dad or mum ByteDance plans to spend as much as $5 billion shopping for again inventory, an individual accustomed to the matter informed CNBC, as one of many world’s most dear startups seeks to present shareholders an opportunity to money out of their holdings.

ByteDance is providing shareholders $160 per share, which values the agency at round $268 billion, the individual stated.

There is no such thing as a timeline for the completion of the share repurchases, however ByteDance has requested shareholders in the event that they’d like to enroll to this system, the individual stated.

ByteDance declined to remark.

Buybacks by personal firms are sometimes a approach for shareholders to make a return on their early investments, particularly when there isn’t any liquidity occasion like an preliminary public providing or acquisition.

The newest spherical of buybacks for shareholders comes slightly below a month after ByteDance supplied to repurchase restricted inventory models (RSU) or choices from staff for a similar worth of $160 per share.

ByteDance, which was based in 2012, has been tipped to go public for the previous couple of years, however has confronted an growing variety of headwinds.

The Chinese language big’s hottest abroad app TikTok has confronted scrutiny from lawmakers the world over, specifically within the U.S., the place critics have questioned the protection of American information on the platform.

ByteDance can be chopping tons of of jobs from its gaming division, the place the corporate has aggressively expanded with out success.

The agency has been hit by a slowing Chinese language financial system and by stricter home regulation within the web sector.