HomeTechnologyByteDance to spend up to $3 billion to repurchase shares from investors

ByteDance to spend up to $3 billion to repurchase shares from investors

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ByteDance will spend as much as $3 billion to repurchase shares in a deal that values the Chinese unlisted proprietor of TikTok at round $300 billion, in response to an organization memo to traders seen by Reuters on Friday.

The train is principally geared toward serving to a few of its shareholders enhance their liquidity positions, an individual with direct data of the plan mentioned.

ByteDance had explored conducting an preliminary public providing in Hong Kong, sources have mentioned, however firm mentioned in April final yr it had no imminent plans.

The firm’s board will put the proposal, which values its shares at as much as $176.9 apiece, to its shareholders on the finish of this month and plans to hold out the buyback within the subsequent two to a few months, the particular person with direct data mentioned.

Recent trades within the personal fairness secondary market valued the corporate at $300 billion or decrease, the particular person and a separate supply mentioned.

That compares with valuations of between $300 billion and $400 billion it acquired within the secondary market final yr. Even at $300 billion, it is likely one of the world’s most beneficial personal corporations, in response to CB Insights.

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The sources declined to recognized as the data was confidential.

Slower financial progress, a lot of which is because of COVID curbs, in addition to Beijing’s regulatory crackdown on the tech sector have crimped earnings prospects for a lot of Chinese web corporations.

The firm final month minimize the worth of inventory choices granted to staff by 20% from its 2021 plan.

Revenue progress in 2021 additionally slowed to 70% in contrast with greater than 100% a yr earlier.

In addition to TikTok, ByteDance’s different hit apps embody its Chinese equal Douyin and information aggregator Jinri Toutiao. In 2021, customers spent roughly $2.3 billion in TikTok and the iOS model of Douyin, in response to Sensor Tower.

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