Bytedance sets valuation at over $330 billion as revenue grows, sources say

Bytedance sets valuation at over $330 billion as revenue grows, sources say

ByteDance, the owner of the popular short-video app TikTok, has set its valuation at over $330 billion for a new employee share buyback program, according to three sources familiar with the matter. This valuation is driven by the company's continued revenue growth, with its second-quarter revenue hitting approximately $48 billion, an increase of 25% year-on-year [1].

The buyback program, which is expected to be launched in the autumn, will offer current employees $200.41 per share, up 5.5% from the previous offer of $189.90 per share, which valued ByteDance at roughly $315 billion. This latest buyback will come as ByteDance consolidates its position as the world's largest social media company by revenue, with the majority of its revenue coming from the Chinese market [1].

ByteDance's financial flexibility and healthy margins are evident in its decision to use its own balance sheet for the buyback program, unlike many other late-stage private companies that often rely on external investor capital. The company has been investing heavily in artificial intelligence, including the purchase of Nvidia chips and the development of AI-related infrastructure [1].

Despite its strong financial performance, ByteDance faces significant political and regulatory risks in the United States, where lawmakers have raised national security concerns over its Chinese ownership. Congress passed a law last year requiring ByteDance to divest TikTok's U.S. assets by January 19, 2025, or face a nationwide ban of the app. President Donald Trump has extended the deadline for the company to divest its U.S. assets to September 17, but some lawmakers have criticized the delay [1].

TikTok's U.S. operations remain unprofitable, but ByteDance is profitable as a company. If the sale of TikTok's U.S. business is finalized, it is expected to be owned by a joint venture formed by an American investor consortium and ByteDance, which will maintain a minority stake [1].

The new ByteDance buyback could help bolster morale among its U.S.-based staff, who are concerned about TikTok's uncertain future. TikTok has been working on preparing a potential standalone app for U.S. users, although it remains unclear if any contingency plan will be finalized amid ongoing trade talks between the U.S. and China [1].

References:
[1] https://www.reuters.com/business/finance/tiktok-owner-bytedance-sets-valuation-over-330-billion-revenue-grows-sources-say-2025-08-27/
[2] https://finance.yahoo.com/news/exclusive-tiktok-owner-bytedance-sets-142117183.html
[3] https://www.tradingview.com/news/reuters.com,2025:newsml_L1N3UJ0JN:0-tiktok-owner-bytedance-sets-valuation-at-over-330-billion-as-revenue-grows-sources-say/