ByteDance Expands Beyond TikTok, Invests in E-commerce and AI
ByteDance has upped the price in its latest employee share buyback program. The company, which owns popular apps like TikTok, has increased what it will pay current workers and former employees to purchase back shares.
According to reports, ByteDance will now offer $181 per share to current employees and $154 to previous staff opting to sell. This marks a rise from the spring buyback that paid $171 and $145 respectively. One data source said the higher prices valued ByteDance at nearly $230 billion, approaching its estimated worth from a proposed buyback late last year.
Besides buying more of its stock, ByteDance is also looking to take out a massive $9.5 billion loan. If fully drawn, it would be the largest Asia loan outside Japan. Three major banks are organizing the multi-year financing to help refinance $5 billion in existing debt from 2021. ByteDance reportedly wants to capitalize on favorable market conditions.
The expanded buyback program and gargantuan loan come as the company, founded in 2012, continues growing at a rapid clip. ByteDance saw a 60% jump in 2023 profits, outpacing rivals in China, with revenues now over $40 billion. It aims to invest heavily in new spheres like e-commerce and AI in addition to its dominant social platforms.
