ByteDance's higher valuation reflects resilience amid upcoming US divestment of TikTok

Core Insights - ByteDance has initiated a new round of employee share buy-backs, which is expected to enhance the company's valuation amid ongoing geopolitical uncertainties regarding TikTok's US operations [1][5]. Employee Share Buy-Back Program - The latest repurchase program priced vested restricted stock units (RSUs) at US$200.41 per share, reflecting a 5.5% increase from US$189.90 in the previous round held in April [2]. - For former employees, the repurchase price was set at US$180.37 per share, nearly 12% higher than the last round's US$161.42, narrowing the gap between current and former employees [3]. Valuation Insights - The new repurchase price indicates that ByteDance's management does not perceive the potential divestment of TikTok's US operations as significantly detrimental to the company's valuation, which is estimated at approximately US$330 billion [5]. - The share repurchase price may serve as a reference point for company valuation, although a comprehensive assessment is necessary to consider market conditions, profitability, and growth prospects [6]. Market Resilience - The modest increase in share price and valuation highlights ByteDance's resilience in the face of geopolitical tensions and market uncertainties, with the company's valuation peaking at around US$400 billion in 2021 before plans for an IPO were affected by deteriorating US-China relations [6][7].