TikTok owner ByteDance has no public company plans yet – report (Private: BDNCE)

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Despite a premium valuation, TikTok owner ByteDance (BDNCE) has no plans to go public, according to a report from the South China Morning Post.

The company’s chief financial officer, Julie Gao, told an employee meeting that the company remains a private entity at this time, according to the report.

And that’s despite having one of the largest private valuations in the world: ByteDance was probably worth $400 billion at its peak, and likely closer to $300 billion now amid slowing macro growth.

Its short video social app TikTok has grown exponentially, sending ripples through the plans of its rivals, the world’s biggest social media names: Meta Platforms (META), YouTube (GOOG) (GOOGL), Twitter ( TWTR), Snap (SNAP), and Pinterest (PINS).

Instead of going public, which would produce a windfall for its stock and option-holding employees, ByteDance has offered workers the option to cash in options through semi-annual buybacks since 2017.

The company will offer more options at $155 per share, a reduction of about 20% from last year’s option offering at $195 per share. It is also reportedly preparing to offer unvested options priced at more than $155 per share to about 30,000 employees (just over a quarter of its workforce).

Gao also reportedly said ByteDance would cut inflows into non-essential businesses after some of them fell short of expectations.

ByteDance is among the companies that would face new hurdles in product design if a California bill protecting the health of minors becomes law.

About Byron G. Fazio

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