ByteDance Ltd aims to spend up to $3 billion to repurchase shares in a deal valued at $300 billion, Reuters reports citing an internal company memo.
ByteDance also extended its existing stock incentive plan for another ten years, Bloomberg reports.
The move will likely help some of its shareholders improve their liquidity positions.
The TikTok parent had reportedly explored conducting an initial public offering in Hong Kong in August, while the company clarified it had no such plans.
ByteDance’s board will put the proposal, which values its shares at up to $176.9 a piece to its shareholders at the end of this month and plans to carry out the buyback in the next two to three months.
Recent trades in the private equity secondary market valued ByteDance at $300 billion or lower, down from 2021’s valuation of $300 billion – $400 billion.
Slower economic growth, primarily due to COVID curbs, and Beijing’s regulatory crackdown on the tech sector weighed on the earnings prospects for many Chinese internet firms.
In 2021, users spent $2.3 billion on TikTok and the iOS version of Douyin, according to Sensor Tower.
Earlier, ByteDance slashed the price of its stock options for talented employees and attracted good hires.
Recently, a report suggested that TikTok and Meta Platforms IncMETA Facebook tracked user data via in-app browsers.
