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ByteDance, the Chinese owner of TikTok, plans to buy back up to USD 6 billion worth of shares from existing investors, The Information reported on Thursday. The company would do this at a valuation of about USD 400 billion.
The report cites a letter sent to shareholders. A buyback lets current investors sell part of their stake to the company, so they can cash out while the firm stays private. The valuation is about 20% higher than the one used in ByteDance's last buyback a year ago.
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The jump shows how much investor confidence in ByteDance has grown. Earlier Bloomberg reports put the company's buyback valuation at USD 268 billion in 2023 and USD 300 billion in 2024. The new plan would push the figure far beyond both marks.
Investing outlet InvestingLive said the deal gives a fresh benchmark for valuing Chinese tech firms and large private companies linked to AI. The numbers come from a shareholder letter seen by The Information, so they are not an official announcement from the company.
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ByteDance has stayed private for years, and its value has often been judged through buybacks and trades between investors. The planned USD 6 billion repurchase equals roughly 1.5% of the company's value, so it is a small slice of the total. Several large investors had already marked the company above USD 400 billion in earlier reports.
One example is a mark by SoftBank's Vision Fund that pointed to the strength of ByteDance's AI business, Doubao. Existing shareholders get a chance to sell at a higher price, while the company keeps control of its ownership. Investors will now look for final terms and timing, which a formal announcement would confirm.