TikTok Parent Buys Shares, Rich Tech Auto Employees – 2 hours ago

Jakarta, CNBC Indonesia – Chinese technology giant ByteDance is offering to buy back employee shares at a higher price than earlier this year.

This step was taken by TikTok’s parent company in an effort to increase motivation and increase employee confidence after going through a year full of challenges.

ByteDance told employees outside the US that it was willing to buy restricted stock units (RSUs) from them for US$160 each, up from the US$155 price offered last April.

This option is optional. Just like the agreement earlier this year given to employees in the US.

RSUs are instruments that employees can purchase, which are then converted into actual shares if the company goes public or is acquired.

A ByteDance spokesperson confirmed the plans to CNBC International. They said the company aims to provide RSU liquidity to motivate employees through a buyback program.

These few years have been full of challenges for ByteDance. The Chinese giant faces stricter regulations at home, a decline in its valuation and increased scrutiny of its TikTok app in the US.

In March, TikTok CEO Shou Zi Chew was criticized by US lawmakers who were increasingly concerned that American users’ data would fall into the hands of the Chinese government.

ByteDance is not a public company. Long-standing private technology companies may offer buyback options to provide them with liquidity, as management attempts to demonstrate optimism about the business’s future prospects.

This is also a way for new employees who may have purchased internal stock at a cheaper price to get a return on their investment.

[Gambas:Video CNBC]

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