Tech giant ByteDance is offering to buy back $3 billion in its own stocks from investors following news that the Chinese company’s initial public offering has stalled. The plan, which gives investors an exit opportunity, was announced via email on Friday.
In accordance with its share price of $177, ByteDance’s valuation has been calculated to be $300 billion, the company wrote in a memo. The Beijing-based company also stated that it plans to extend its existing stock incentive plan for another 10 years.
Driven by the success of its app TikTok as well as the Chinese equivalent Douyin, ByteDance has grown into one of the most valuable tech companies across the globe. The company’s growth potential has, however, been threatened by a Chinese crackdown on internet firms as well as U.S. suspicions of the service’s use of user data. TikTok Chief Operating Officer Vanessa Pappas came under pressure during senate hearings to block U.S. user data from Chinese review.
ByteDance is joined in its decision to buy back its own shares by fellow Chinese corporations Alibaba and Tencent Holdings Ltd. This comes as prominent investors such as Warren Buffett and SoftBank Group Corp. are exiting their Chinese-based stock investments.