Is ByteDance Weathering the Storm? Surprising Revenue Surge Fuels Major Shareholder Play

Meta Platforms Inc's META rival TikTok parent ByteDance Ltd is proposing a buyback of up to $5 billion from investors. 

This new offer is set at $160 per share, mirroring the price offered to employees in November, and is valued about 11% lower than the rate ByteDance proposed in 2022. 

Despite this reduction, the valuation keeps ByteDance among the top 40 most valuable global public companies and third in China, Bloomberg reports.

Also Read: TikTok's Subscription Model Test - Is Ad-Free Trial A Revenue Risk?

ByteDance rose to prominence in China, tapping its social video platforms to venture into e-commerce and other areas. 

However, its gaming and virtual reality expansions failed, prompting the company to scale back to its core business, primarily TikTok and its Chinese counterpart Douyin.

ByteDance has faced challenges in pursuing an IPO, dealing with regulatory crackdowns in China and intense scrutiny abroad.

 Key markets like India and the U.S. have posed significant hurdles, with India banning TikTok and the U.S. expressing national security concerns. 

In Indonesia, ByteDance paused its e-commerce operations and is now collaborating with local partner GoTo Group.

Despite the setbacks, ByteDance continues to excel, owning some of the most downloaded apps in the U.S. and China. The company saw a 30% revenue increase in 2022, exceeding $80 billion, bolstered by the success of TikTok Shop and on-demand services in China. 

Earlier this year, ByteDance showcased its AI chatbots to the masses.