ByteDance, the parent company of TikTok, is allegedly proposing to repurchase approximately $5 billion in shares from investors, a move that would value the company at around $268 billion, according to two sources familiar with the matter, per Reuters.
According to insiders at ByteDance, the repurchase price is $160 per share, which is the same as the employee stock option repurchase price in October this year, corresponding to an estimated value of about $268 billion. This marks a decrease of about 10% compared to the same period in 2022.
Regarding the decrease of ByteDance’s valuation, experts believe it is mainly caused by two factors. First, the development of ByteDance’s overseas business has been hindered, with TikTok and TikTok Shop facing restrictions in multiple countries. Second, the company has not released any hit products in a long time.
However,this situation may be changing. This week, TikTok reached a cooperation agreement with Indonesian tech company GoTo to restart its e-commerce business, indicating a pause of the Indonesian government’s ban on TikTok. Also, ByteDance has been adjusting its development strategy through the contraction of certain business units. In November, the company’s VR business Pico underwent layoffs, so did its game brand Nuverse. ByteDance is also reportedly considering selling its game studio Moonton. With the release of a large model product in November, the company is also exploring opportunities within the realm of AI.
SEE ALSO: ByteDance Launches Large Model Product “ChitChop”
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Author : Tech-News Team
Publish date : 2023-12-08 00:44:14
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