ByteDance is planning to spend up to $3 billion to buy back shares from investors.

ByteDance to Spend Up to $3 Billion on Share Buybacks.

Company Valued at Around $300 Billion.

Aimed at Helping Some Shareholders Improve Their Liquidity Positions.

ByteDance, the owner of TikTok, is planning to spend up to $3 billion to buy back shares from investors in a deal that values the company at around $300 billion. The exercise is mainly aimed at helping some of its shareholders improve their liquidity positions.

The company last month cut the price of stock options granted to employees by 20%. Slower economic growth, much of which is due to COVID curbs, as well as Beijing's regulatory crackdown on the tech sector have crimped earnings prospects for many Chinese internet firms. In 2021, users spent approximately $2.3 billion in TikTok and the iOS version of Douyin, according to Sensor Tower.

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ByteDance Explores Conducting an Initial Public Offering in Hong Kong.

Company Says There Are No Imminent Plans.

ByteDance is exploring conducting an initial public offering (IPO) in Hong Kong, but the company says there are no imminent plans. The board of directors will put the proposal to shareholders at the end of the month. ByteDance last month cut the price of stock options granted to employees by 20%. Slower economic growth, much of which is due to COVID curbs, as well as Beijing's regulatory crackdown on the tech sector have crimped earnings prospects for many Chinese internet firms. In 2021, users spent approximately $2.3 billion in TikTok and the iOS version of Douyin, according to Sensor Tower.

Board to Put Proposal to Shareholders at the End of the Month.

The board of directors will put the proposal to shareholders at the end of the month. ByteDance last month cut the price of stock options granted to employees by 20%. Slower economic growth, much of which is due to COVID curbs, as well as Beijing's regulatory crackdown on the tech sector have crimped earnings prospects for many Chinese internet firms. In 2021, users spent approximately $2.3 billion in TikTok and the iOS version of Douyin, according to Sensor Tower.

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Recent Trades in the Private Equity Secondary Market.

TikTok Parent Company Valued at $300 Billion or Lower.

Compared to Valuations of Between $300 Billion and $400 Billion Last Year.

In recent months, there have been a number of trades in the private equity secondary market for stakes in ByteDance, the parent company of TikTok. The most recent trade that has been reported was for a stake of just over 5% that was sold by General Atlantic at a price that valued ByteDance at $300 billion or lower. This is compared to valuations of between $300 billion and $400 billion that were being quoted last year.

It is believed that the reason for the decrease in valuation is due to the slowdown in growth of TikTok and other social media platforms, as well as the regulatory crackdown on the tech sector in China. However, despite this, ByteDance remains one of the most valuable startups in the world, and its founder, Zhang Yiming, is now worth an estimated $15 billion.

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Slower Economic Growth and Regulatory Crackdown on Tech Sector.

COVID Curbs Have Crimped Earnings Prospects for Many Chinese Internet Firms.

The outbreak of COVID-19 has dealt a severe blow to the global economy, with China's GDP growth rate slowing to 6.1% in 2020 from 6.9% in 2019. The country's internet sector has also been affected, with many firms seeing their earnings prospects crimped by the pandemic.

ByteDance is one of the companies that have been hit hard by the pandemic. The company last month cut the price of stock options granted to employees by 20%. This was due to slower economic growth, much of which is attributable to COVID curbs.

In addition to the impact of the pandemic, ByteDance has also been affected by Beijing's regulatory crackdown on the tech sector. The Chinese government has been cracking down on internet firms in recent months, and this has led to a decline in user growth and engagement for ByteDance's flagship app TikTok.

ByteDance Cut the Price of Stock Options Granted to Employees Last Month.

As mentioned above, ByteDance cut the price of stock options granted to employees by 20% last month due to slower economic growth and Beijing's regulatory crackdown on the tech sector. This move will likely lead to a decline in employee morale, as well as an exodus of talent from the company.

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