ByteDance plans $6B share buyback at $400B valuation - reports

ByteDance, the owner of TikTok, plans to purchase up to US$6 billion of its own shares from investors in a buyback offer with a valuation of approximately US$400 billion, according to sources familiar with the proposal. This represents a 20% increase from a similar program conducted a year prior. The company informed investors of this offer through a recent letter, setting the price of each share at US$241.35.

In addition to the share buyback, ByteDance intends to postpone its deadline to either go public or provide external shareholders the option to sell their entire holdings by four years, now set for December 11, 2030. The company's letter to shareholders also revealed plans to grant employees in its artificial intelligence division a total of 300 million shares, which are tied to the value of ByteDance's AI business.

This move aims to attract and retain AI talent, as the company continues to intensify its efforts in this field. ByteDance is already offering special equity arrangements to its AI staff, distinguishing them from the rest of the company. The move comes as ByteDance seeks to catch up in the AI arena, following its rise to become the world's most valuable startup due to the success of TikTok and Douyin, but trailing behind in the ChatGPT era.