ByteDance is offering a higher price for stock held by employees as it starts the second stock option buyback. TikTok's Chinese owner typically launches stock option buybacks twice a year.
The company is offering $155 per share, which is significantly above $142 offered in the buyback earlier this year, Reuters reported, citing some employees.
110,000 Employees Globally
ByteDance, which is privately held, has some 110,000 employees globally. Eligible staff have been intimated about the buyback, They can apply to cash out their Restricted Stock Units (RSUs), ByteDance's stock option programme.
Valued at $300 Billion
According to Equitypundit, the stock buyback will cost the company as much as $3 billion, considering a total valuation of $300 billion. According to Reuters calculations, the company is valued around $300 billion, which translates into $170 per share. ByteDance's valuation in the private-equity secondary market has fallen from last years' $400 billion.
The buyback is primarily intended to incentivise the employees and help them monetize their holding in the company.