ByteDance Soars to $330 Billion Valuation, Surpasses Meta in Revenue Amid US Challenges

TikTok Parent Overtakes Meta In Revenue, Valuation Soars To $330 Billion Despite US Sale Pressure, Ban Threats: Report - Meta Platforms (NASDAQ:META), KKR (NYSE:KKR)

ByteDance, the Chinese tech giant behind TikTok, is reportedly preparing a new employee share buyback program that will value the company at more than $330 billion, even as it faces intense political scrutiny in the U.S. and pressure to divest TikTok's U.S. operations. ByteDance Raises Valuation With Buyback Plan ByteDance will offer employees $200.41 per share, a 5.5% increase from its last buyback six months ago that valued the firm at about $315 billion, reported Reuters, citing three people with knowledge of the matter. The move reflects ByteDance's strong financial position and comes as its second-quarter revenue surged to around $48 billion, up 25% year-over-year, consolidating its lead over Meta Platforms Inc. META as the world's top social media company by sales, the report said, citing sources. ByteDance's biannual buybacks allow employees to cash out holdings while signaling financial health. Unlike many late-stage private companies that rely on outside capital for such programs, ByteDance is funding this repurchase using its own balance sheet. ByteDance did not immediately respond to Benzinga's request for comments. See Also: Elon Musk's Father Says He Warned His Son Against Going Into Politics - 'He's Not a Very Good Politician At All' TikTok Faces Deadline To Divest US Assets Despite its revenue dominance, ByteDance remains under heavy U.S. political pressure. Washington lawmakers have labeled TikTok a national security risk due to Chinese ownership. Congress passed legislation in 2024 requiring ByteDance to sell TikTok's U.S. operations by Jan. 19, 2025, or face a nationwide ban. However, President Donald Trump has extended the deadline to Sept. 17, with hints of further extensions. He has said "U.S. buyers are lined up" for TikTok, but lawmakers have criticized the delays. Sources told the publication that a U.S.-based investor consortium, including Susquehanna International Group, General Atlantic, KKR & Co. Inc. KKR and Andreessen Horowitz, has emerged as the frontrunner to acquire TikTok, with ByteDance expected to retain a minority stake. ByteDance Prepares New US TikTok App As negotiations continue, TikTok is reportedly building a separate app for American users, with plans to launch it in U.S. app stores on Sept. 5. Existing users will be asked to migrate by March 2026. The move could ensure service continuity if a sale or ban proceeds. ByteDance Strengthens AI Push Amid Global Scrutiny ByteDance has invested billions of dollars into AI development, buying advanced Nvidia Corporation NVDA chips and expanding its infrastructure. Analysts say its valuation -- still a fraction of Meta's $1.9 trillion market cap -- reflects regulatory risks but also its leadership in social media monetization and AI innovation, the report said. Read Next: Trump Threatens 10% 'Additional' Tariff On All BRICS-Aligned Nations, Says Tariff Letters Drop At Noon Monday Photo Courtesy: Melnikov Dmitriy on Shutterstock.com Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. KKRKKR & Co Inc$139.00-0.77%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum62.21Growth65.35QualityN/AValue49.96Price TrendShortMediumLongOverviewMETAMeta Platforms Inc$745.49-1.14%NVDANVIDIA Corp$175.90-3.23%Market News and Data brought to you by Benzinga APIs

ByteDance Targets $330 Billion Valuation as Revenues Exceed Meta | PYMNTS.com

By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions. The Chinese tech giant plans to offer employees $200.41 per share in the repurchase program, Reuters reported Wednesday (Aug. 27), citing sources familiar with the matter. That figure is up from the $189.90 each it offered them about six months ago, which valued ByteDance at around $315 billion, the report added. PYMNTS has contacted ByteDance for comment but has not yet gotten a response. Reuters notes that this is happening as ByteDance cements its position as the world's largest social media company in terms of revenue. The news outlet's sources said the company, which owns short-form video app TikTok, saw its second-quarter revenue climb 25% year over year. During the first quarter, ByteDance's revenue topped $43 billion, making it the world's number one social media company by sales, beating the $42.3 billion earned by Meta in that period. Still, ByteDance's valuation remains less than a fifth of Meta's roughly $1.9 trillion market cap. According to Reuters, analysts chalk that gap up to political and regulatory risks in the U.S., where TikTok has 170 million users. ByteDance is facing pressure to sell TikTok's U.S. business, with Congress passing a law last year requiring ByteDance to divest TikTok's U.S. assets by Jan. 19, 2025 or face a nationwide ban of the app, which has 170 million U.S. users. President Donald Trump has granted TikTok multiple extensions, the most recent one giving the company until Sept. 17 to find a new buyer. These reprieves have led to criticism from some lawmakers, who contend the Trump administration is "flouting the law" and ignoring the national security concerns related to ByteDance's ties to the Chinese government that caused the ban in the first place. While ByteDance is profitable as a company, TikTok's U.S. business has been loss-making thus far, said two of the Reuters sources. If and when the sale becomes final, TikTok U.S. will be a joint venture run by a group of American investors, with ByteDance holding a minority stake. Meanwhile, last week brought a report that TikTok plans to let go of hundreds of staffers in its trust and safety department as it reorganizes its content moderation efforts and automates more of that work with artificial intelligence (AI). According to the Financial Times, the company said the layoffs "are intended to concentrate operation expertise in specific locations" and that "technological advances, such as the enhancement of large language models, are reshaping our approach."