ByteDance opens a new round of option buybacks, with employees paying $160 per share

According to news from this site on November 8, according to The Paper, ByteDance has launched the second round of employee option buyback this year. Among them, the pre-tax repurchase price for departing employees is US$128 per share and that for current employees is US$160 per share, an increase of 3% compared with the previous round of US$155 per share. The email stated that employees can voluntarily apply to participate based on actual needs.

Since 2017, Bytedance has begun to provide employees with option buyback opportunities to meet their liquidity needs. The company used to provide employees with option repurchase opportunities twice a year, in the first half of the year and the second half of the year. Each repurchase price would be adjusted to a certain extent

According to the introduction, options need to be granted before being converted into cash. , vesting, exercise and liquidation exit four steps. Employees are granted options when they join the company, and Byte employees can also exchange them for options through year-end bonuses. Byte's options will take four years to fully vest, and the annual vesting proportions are 15%, 25%, 25%, and 35% respectively. The vested part can be realized by paying a small amount of the exercise price, and the method of realization can be the company's repurchase or selling it on the open market after the company is listed

This site noticed that in October this year, there were media reports that, ByteDance plans to buy back employee equity at $160 per share. Based on the 1.4 billion shares issued, the company's corresponding valuation is approximately $223.5 billion, a 26% decrease from September 2022.

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