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Coco Feng

Social media giant ByteDance, owner of hit short video platforms TikTok and Douyin, has initiated a new round of share buy-backs for employees that price the equity nearly 6 per cent higher than in the previous round.
The latest repurchase programme, which is initially open to employees based in the United States, priced the vested restricted stock units (RSUs) at U$181 per share, up almost 6 per cent from US$171 during the round held in spring this year, according to a person familiar with the matter.
For former employees, the buy-back rate has been pegged at US$154 per share, 5.5 per cent higher than US$146 in the previous round.
Beijing-based ByteDance – the world’s largest unicorn, according to the Hurun Research Institute – did not immediately respond to a request for comment on Wednesday.

The more generous buy-back plan suggests that the company’s valuation is growing in the private market, along with its revenue and the popularity of its apps.
The new share repurchase programme also comes at a time when privately held ByteDance is going after fresh financing. Earlier this week, reports by Bloomberg and Reuters said the company was seeking a US$9.5 billion bank loan, which would be the biggest dollar-denominated corporate facility in Asia, excluding Japan.
ByteDance has conducted employee share buy-backs since 2017, usually twice a year, to ensure more liquidity and as a means to motivate staff. The programme did not cover US-based employees until last year, owing to complex taxation issues.
The firm has adjusted its policy on share options so that US-based employees can use less cash to pay taxes, the South China Morning Post reported in July. Under the new arrangement, employees can withhold up to 37 per cent of their vested RSUs for tax payments, up from the previous 22 per cent.
Founded in 2012, ByteDance has also repurchased shares from institutional investors. In December last year, the company offered to buy back around US$5 billion worth of shares from existing investors, which valued it at around US$268 billion, the Post reported at the time. That valuation was lower than its peak of more than US$400 billion in 2021.
At present, ByteDance is challenging a new law in the US that would require the firm to divest TikTok’s US assets by January 2025 or face an app store ban across America. TikTok and ByteDance filed a federal suit in May to block the law, arguing that it violates several provisions of the US Constitution. Oral arguments are scheduled for September 16.


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The firm’s latest repurchase programme, initially open to US employees, priced the vested restricted stock units at U$181 per share.
