Photo Credit: Benny Chan / Fotoworks
TikTok parent company ByteDance is valuing its business at $300 billion, despite the looming ban for TikTok in the United States. The valuation results from a recent buyback offer by ByteDance, according to the Wall Street Journal.
President Joe Biden signed a law earlier this year that would force ByteDance to divest from TikTok by January or face a ban in the United States. Meanwhile, ByteDance has continued to grow at a meteoric pace across the globe—valued at $225 billion in October 2023. A buyback in December 2023 boosted its valuation to $268 million according to company email to investors.
Investors in ByteDance view President-elect Trump’s return to the White House as a positive note for the company. While Trump was behind the original effort to ban TikTok in the United States, after meeting with billionaire ByteDance investor Jeff Yass, the former President has changed his tune on banning the app. It remains to be seen if the current ban will be overturned before mid-January.
ByteDance informed investors in recent days that it was looking to perform a share buy back valued at $180 per share. The move is one that gives liquidity to investors and early employees—but also results in a $300 billion valuation for the company and its many social media arms. Just recently, TikTok announced integration with Lemon8, an Instagram competitor created by ByteDance.
National security threats posed by TikTok has led to branches of the military and both branches of Congress to ban the app from government devices. Those concerns are what led the U.S. law that would see TikTok banned in the United States. But CEO Shou Zi Chew says TikTok is not going anywhere, with the company arguing the proposed ban would violate the free speech rights of its American users. ByteDance has stated that it will not sell its U.S. operations—no matter the interest from other parties.
