KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
ByteDance, the Chinese tech giant behind TikTok, is launching a new employee share buyback that values the company at over US$330 billion (RM1.4 trillion), supported by strong revenue growth.
Key Highlights
Buyback Price: US$200.41 per share, up 5.5% from the US$189.90 offered six months ago (then valuing ByteDance at ~US$315 billion).
Timing: Programme expected to launch in autumn 2025.
Revenue Performance:
Q2 2025 revenue: ~US$48 billion, +25% YoY.
Q1 2025 revenue: >US$43 billion, topping Meta’s US$42.3 billion for the same period.
Business Mix: Majority of sales from China, while TikTok’s US arm remains under political pressure.
Industry Position
ByteDance has cemented its status as the world’s largest social media company by revenue, outpacing Meta.
Growth is fueled by robust ad demand, both domestically and globally.
Regular biannual buybacks give employees liquidity without an IPO; unlike peers such as SpaceX and OpenAI, ByteDance funds these directly from its own balance sheet, signaling strong margins and financial flexibility.
AI and Expansion
ByteDance is investing billions into AI infrastructure, including Nvidia chips and proprietary models.
The firm is widely viewed as a Chinese AI leader, with ambitions extending beyond social media.
TikTok US Pressure
ByteDance faces mounting scrutiny in the US:
Congress passed a law requiring divestment of TikTok’s US assets by Jan 19, 2025, or face a nationwide ban.
President Trump has extended the deadline to Sept 17, with possible further extensions.
An American investor consortium (Susquehanna, General Atlantic, KKR, Andreessen Horowitz) is the frontrunner to acquire TikTok’s US operations. ByteDance is expected to keep a minority stake.
Blackstone recently dropped out of the bidding group.
Outlook
Despite surpassing Meta in revenue, ByteDance’s valuation (US$330b) is still less than one-fifth of Meta’s ~US$1.9 trillion market cap due to regulatory and political risks.
The buyback could help boost morale among employees, especially in the US where TikTok’s future remains uncertain.
Sources said ByteDance is also preparing a standalone TikTok app for US users, though its future depends on regulatory outcomes.
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