As reported by a source who is familiar with the situation, China’s ByteDance, the parent company of the brief video app TikTok, is willing to buy back shares from its staff members outside of the US for $160 each. The company has confirmed this plan.
In October, the company created a proposal to current and former U.S. employees, as well as the price per reserved stock unit is in line with that offer.
A report stated that the company was looking to purchase at least $300 million worth of stock at $160 per share.
The price put the company’s valuation at $223.5 billion, which is roughly 26% less than what it was worth a year ago.
A buyback program ByteDance offered to its non-U.S. shareholders last year valued the company at $300 billion. personnel.
The source said that the most recent price of $160 is greater than the $155 price that was established in an earlier buyback in April.
ByteDance Extend Share Buy-back Program
ByteDance expanded its share buyback program to US workers in October, providing both current and previous employees with the same price.
Though the company’s plans for an initial public offering (IPO) remain on hold, the 20% lower offer to those who departed the company voluntarily has angered dozens of former employees in the US.
Patrick Ryan, who held the position of lead technical program manager for security and web3 research for ByteDance in Mountain View, California, from 2020 to 2022, claimed that there is “no precedent for this” in the Silicon Valley tech sector.
Numerous other people also express dissatisfaction, such as the thirty or so former workers who have been speaking out about their concerns in private and the over ninety people who have joined Ryan’s Discord channel.
Since RSUs cannot be traded on secondary markets and the company’s IPO plans are still on hold, the only way for employees to get paid is through the internal buy-back program. Since 2017, it has employed workers from China under the same policy, in which employees who resign are typically given a discount.