TikTok Parent ByteDance Revises Stock Options To Retain Workers: Bloomberg
- TikTok parent ByteDance Ltd looks to slash the price of its stock options to talented employees and attract good hires following the 2021 tech meltdown and China's domestic crackdown, Bloomberg reports.
- ByteDance is one of the rising powers in China's technology industry, alongside Alibaba Group Holding Limited (NYSE: BABA), with TikTok giving the likes of Meta Platforms Inc (NASDAQ: META) a run for their money while catching up on the other U.S. big techs.
- ByteDance reportedly aims to cut the option prices by over 20% to $155 a share.
- Earlier, ByteDance's valuation in private trading had dropped to below $300 billion from a high of over $400 billion.
- Options give holders the right to acquire shares at a predetermined strike price, and they make money if the market valuation exceeds the strike price.
- The company, co-founded by Zhang Yiming, has 110,000 employees.
- Alibaba had undergone major downsizing amid the economic uncertainties.
- U.S. tech majors, including Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) Google and Meta Platforms, look to significant job cuts to beat the economic uncertainties. Snap Inc (SNAP) looks to downsize its workforce by 20%.
- Price Action: BABA shares traded higher by 1.67% at $95.41 in the premarket on the last check Wednesday.
- Photo By Olivier Bergeron Via Unsplash
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