Technology
ByteDance Defies TikTok Ban Threat and Increases Valuation to Record Highs
ByteDance increases its valuation to 300 billion dollars, defying geopolitical tensions and relying on global growth strategies.
The Chinese technology group ByteDance, parent company of the popular video app TikTok, was valued at around USD 300 billion in a recent buyback action – one of the highest valuations in the company's history. This happens despite TikTok being threatened by a possible ban in the USA.
The valuation is based on a share buyback offer that ByteDance recently presented to investors, according to insider reports. This development shows that the company continues to focus on global growth. Back in October 2023, ByteDance had valued itself at 225 billion dollars, and a later buyback action in December increased the valuation to 268 billion dollars.
A law signed by President Joe Biden requires ByteDance to spin off TikTok by mid-January 2025, otherwise, a ban on the app in the USA is threatened. Despite these uncertainties, many ByteDance investors view Donald Trump's election victory as positive for TikTok. During his previous presidency, Trump supported a ban on the app but changed his stance during his 2024 campaign after a meeting with Jeff Yass, a significant ByteDance investor.
TikTok remains a focal point in the geopolitical tensions between the USA and China. Critics of the law argue it is necessary to prevent potential espionage by the Chinese government and to ensure that content on TikTok is not manipulated. However, TikTok has repeatedly stated that it would not comply with requests from Beijing concerning users or content.
As a counter-strategy, TikTok filed a lawsuit in May against the law, which the company claims violates the free speech of its users. ByteDance also emphasized that a sale of TikTok's operations in the U.S. is not possible.
In recent months, ByteDance has increasingly relied on buyback actions to provide liquidity to investors and early employees, as the market for initial public offerings continues to weaken. In addition to TikTok, ByteDance owns other successful online services in China that contribute to the company's stable valuation.
ByteDance has managed to secure global growth despite geopolitical hurdles and regulatory uncertainties and to strengthen its position as one of the most valuable tech companies in the world.
