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TikTok guardian ByteDance plans to spend as a lot as $5 billion looking for once more stock, a person conversant within the matter instructed CNBC, as one in every of many world’s most useful startups seeks to supply shareholders a chance to cash out of their holdings.
ByteDance is offering shareholders $160 per share, which values the company at spherical $268 billion, the actual particular person said.
There isn’t any timeline for the completion of the share repurchases, nonetheless ByteDance has requested shareholders within the occasion that they’d prefer to enroll to this technique, the actual particular person said.
ByteDance declined to comment.
Buybacks by private companies are typically a method for shareholders to make a return on their early investments, significantly when there isn’t any liquidity event like an preliminary public offering or acquisition.
The most recent spherical of buybacks for shareholders comes just under a month after ByteDance supplied to repurchase restricted stock objects (RSU) or decisions from employees for the same price of $160 per share.
ByteDance, which was based mostly in 2012, has been tipped to go public for the previous couple of years, nonetheless has confronted an rising number of headwinds.
The Chinese language huge’s hottest overseas app TikTok has confronted scrutiny from lawmakers internationally, significantly throughout the U.S., the place critics have questioned the safety of American info on the platform.
ByteDance can be decreasing a complete bunch of jobs from its gaming division, the place the company has aggressively expanded with out success.
The company has been hit by a slowing Chinese language financial system and by stricter house regulation throughout the internet sector.