ByteDance, the parent company of TikTok, has unveiled an expansive buyback initiative for its employees beyond US borders. The company is offering its global employees an opportunity to sell their shares at around $171 each.
The latest offer, priced at $170.81 per share, allows non-US employees to sell half of their vested stock units, with provisions for additional sales after a year. Share awards in lieu of cash bonuses become eligible for sale one year after vesting, according to the documents. Addressing a global audience of staff, ByteDance, acknowledged the need of some employees to address their cash and liquidity requirements through this offering.
This move follows ByteDance’s previous offer to purchase global employee shares at $160 each in December. The latest documents indicate that shares vested in the first quarter of this year are valued at $176, hinting at a potential increase in ByteDance’s internal valuation since the beginning of the year, albeit without factoring in share dilution, as reported by Financial Times.
With about 20 per cent of the company’s stock owned by employees globally, ByteDance counts around 1,00,000 employees outside the US.
However, the lack of liquidity for ByteDance’s employee shareholders has drawn criticism. Some have described the buyback programme as shrouded in ambiguity, leaving managers uncertain in advising their teams.
Despite uncertainties surrounding TikTok’s future in the US, ByteDance’s valuation has surged from $100 billion in 2020 to $268 billion by December 2023.
