ByteDance Soars Past Meta: New Buyback Program Values TikTok's Parent at Over $330 Billion

ByteDance, the parent company of the popular short-video app TikTok, is set to launch a new employee share buyback program that will value the company at over $330 billion. This increase, up from a previous valuation of approximately $315 billion six months ago, is driven by sustained revenue growth that has positioned the Chinese tech giant as the world's largest social media company by sales.

According to sources, ByteDance plans to repurchase shares from current employees at $200.41 each, a more than 5% increase from the prior offering of $189.90. This upcoming buyback, expected in the autumn, reflects the company's robust financial health and its strategy of using its own balance sheet to provide liquidity for employees.

ByteDance's financial performance has been remarkable. Its second-quarter revenue surged by more than 20% year-on-year, reaching approximately $48 billion, with the majority of this growth originating from the Chinese market. This follows a strong first quarter where revenue exceeded $43 billion, surpassing Meta's $42.3 billion in the same period. Both companies maintained sales growth above 20% in the second quarter, bolstered by strong advertising demand.

Despite outpacing Meta in revenue, ByteDance's valuation remains significantly lower—less than a fifth of Meta's approximately $1.9 trillion market capitalization. Analysts attribute this gap to political and regulatory risks, particularly in the United States, where TikTok faces intense pressure over its Chinese ownership. A U.S. law passed last year mandates the divestment of TikTok's U.S. assets or a potential nationwide ban. Although a deadline was set for January 19, 2025, President Donald Trump has granted multiple extensions. ByteDance is profitable but its U.S. business has so far been loss-making.

In response to the uncertain regulatory environment, the new employee buyback could help boost morale among U.S.-based staff. A consortium of American investors, including existing ByteDance shareholders, has emerged as a potential buyer for TikTok's U.S. operations.