ByteDance plans a new employee share buyback, valuing the company at over $330 billion. A repurchase program offers current employees $200.41 per share. ByteDance’s revenue grew 25% year-on-year in the second quarter, reaching about $48 billion, mostly from the Chinese market amid U.S. divestment pressure.

ByteDance, known for TikTok, conducts regular buybacks to provide liquidity to employees without an IPO. The company’s balance sheet strength allows for these programs without external investor capital. ByteDance is recognized as a leader in artificial intelligence in China, investing heavily in AI-related infrastructure.

Despite surpassing Meta in revenue, ByteDance’s valuation is much lower due to U.S. political and regulatory risks. Lawmakers raised national security concerns over ByteDance’s Chinese ownership, leading to pressure in Washington. President Trump extended the deadline for ByteDance to divest TikTok’s U.S. assets to September 17.

If the sale of TikTok’s U.S. business goes through, it is expected to be owned by a joint venture involving American investors and ByteDance. Recent frontrunners for the consortium include Susquehanna International Group, General Atlantic, and KKR. Blackstone recently dropped out of the deal.

ByteDance’s new buyback may boost morale among U.S. staff concerned about TikTok’s future. TikTok is working on a standalone app for U.S. users amid ongoing trade talks between the U.S. and China. The company’s financial flexibility and healthy margins allow for these initiatives to support employees.

Read more at Yahoo Finance: Exclusive-TikTok owner ByteDance sets valuation at over $330 billion as revenue grows, sources say