ByteDance, the Chinese tech giant behind TikTok, is planning to buy back US$3 billion worth of shares after its highly anticipated initial public offering (IPO) was put on hold. The move comes as ByteDance faces mounting pressure from the US government over national security concerns surrounding TikTok.
ByteDance to buy back US$3b in shares after IPO stalled
ByteDance, the owner of TikTok, is planning to buy back up to $3 billion of its shares from investors after its planned initial public offering (IPO) was put on hold, according to a report from The Wall Street Journal.
The move comes as ByteDance faces increased scrutiny from US regulators over its ties to China. ByteDance was reportedly planning to list TikTok on a US stock exchange this year, but those plans were put on hold after the Trump administration launched an investigation into the company.
While it’s unclear exactly how ByteDance will use the money it raises from the share buyback, the move could help the company appease US regulators and boost its chances of a successful IPO in the future.
What is ByteDance?
ByteDance is a Chinese technology company that specializes in artificial intelligence and operates several popular social media platforms, including TikTok.
ByteDance was founded in 2012 by Zhang Yiming and currently has over 30,000 employees. The company’s valuation reached over US$75 billion in 2018, making it the most valuable startup in the world.
In 2019, ByteDance announced plans to go public on the stock market. However, these plans were put on hold after the US government raised concerns about the national security implications of ByteDance’s ownership of TikTok.
ByteDance has since agreed to sell a 20% stake in TikTok to US investors Oracle and Walmart. The company is also planning to list its shares on the Hong Kong stock exchange.
Why did the IPO stall?
The IPO for ByteDance, the owner of TikTok, stalled because the Trump administration placed a ban on the app. This caused ByteDance to miss out on a huge opportunity to list its shares on the stock market.
The ban came about because of concerns that TikTok could be used to collect data on American users. The app is very popular with young people, so there was worry that it could be used to collect information on them.
ByteDance has said that it will buy back $1 billion worth of shares from investors after the IPO stalled. This is to try and make up for some of the losses that investors incurred.
Overall, the IPO for ByteDance stalled because of the Trump administration’s ban on TikTok. This caused the company to miss out on a major opportunity to list its shares on the stock market.
What will happen with the buy back of shares?
ByteDance, the owner of TikTok, has agreed to buy back $1 billion in shares from investors after its plans for a public listing stalled.
The buyback will allow ByteDance to raise cash to fund its expansion plans. It will also help to boost the company’s valuation.
ByteDance had been planning to list its shares on the stock exchange in order to raise funds for its expansion. However, the company’s IPO plans were put on hold after the US government raised concerns about TikTok’s data privacy practices.
The $1 billion buyback is a sign that ByteDance is still confident about its future prospects. The company is hopeful that it will be able to list its shares on the stock exchange in the near future.
ByteDance is planning to buy back $3 billion in shares after its IPO was stalled. The move will help the company boost its valuation and avoid any potential delisting from US exchanges. ByteDance has been one of the most successful tech companies in recent years, and this move will ensure that it remains a major player in the industry.