ByteDance valuation has been set at more than $330 billion as the TikTok owner prepares a new employee share buyback programme, according to people familiar with the matter. The move marks a 5.5% increase from its last repurchase about six months ago, when the company was valued at roughly $315 billion.
The company will offer employees $200.41 per share in the upcoming buyback, compared with $189.90 previously. The programme, expected to launch in the autumn, provides liquidity to staff while underscoring ByteDance’s financial strength.
Revenue growth drives higher valuation
The updated valuation follows a 25% year-on-year revenue increase in the second quarter, pushing sales to around $48 billion, the sources said. ByteDance overtook Meta in the first quarter to become the world’s largest social media company by revenue, with more than $43 billion in sales against Meta’s $42.3 billion.
Most of ByteDance’s revenue continues to come from its Chinese operations, though the company remains under political pressure in the United States to divest TikTok’s U.S. arm.
Buyback strategy signals financial flexibility
Unlike other late-stage private companies such as SpaceX and OpenAI, which use external investor capital to fund buybacks, ByteDance has consistently relied on its own balance sheet. The practice, conducted on a biannual basis, allows employees to monetise holdings without an IPO and highlights the firm’s healthy margins.
ByteDance is also recognised as one of China’s leading artificial intelligence players, with heavy investment in Nvidia chips, infrastructure and proprietary models.
Political challenges over the TikTok sale
Despite its revenue momentum, ByteDance’s valuation remains less than a fifth of Meta’s $1.9 trillion market capitalisation, a gap analysts link to regulatory and political risk.
The company faces an ongoing requirement under U.S. law to divest TikTok’s American business by September 17, 2025, after a deadline extension by President Donald Trump. TikTok has about 170 million U.S. users.
A consortium of investors, including Susquehanna International Group, General Atlantic, KKR and Andreessen Horowitz, has emerged as the frontrunner to acquire TikTok’s U.S. operations, with ByteDance expected to retain a minority stake. Blackstone has exited the talks following delays.
The potential sale, combined with the new buyback, could reassure U.S.-based employees concerned about TikTok’s uncertain future. Reports also suggest the company has explored a contingency plan to launch a standalone U.S. app, though its status remains unclear amid ongoing trade discussions.
