ByteDance, the Chinese parent company of TikTok, has reportedly set its self-valuation at approximately $300 billion following a recent share buyback proposal, according to Wall Street Journal. This development occurs amidst concerns regarding a potential ban of the popular TikTok app in the United States.
The company has informed investors that it intends to repurchase shares at around $180 each, as noted by the publication. Investors have perceived the return of President-elect Donald Trump to the White House as a favorable development for TikTok's prospects in the U.S.
In a June interview with Bloomberg BusinessWeek, Trump expressed support for TikTok, stating, "I’m for TikTok because you need competition. If you don’t have TikTok, you have Facebook and Instagram." Although he previously labeled TikTok a national security risk, he later joined the platform, which boasts around 170 million users in the U.S.
A law enacted by President Joe Biden on April 24 grants ByteDance until January 19 to divest TikTok or face a potential ban. The White House has indicated a desire to eliminate Chinese ownership on national security grounds, rather than outright banning TikTok.
In May, TikTok and ByteDance filed a lawsuit in U.S. federal court aiming to challenge the law signed by Biden. Both companies have not yet provided a response to a request for comment from Reuters.