By Millie Turner
TikTok-owner ByteDance is reportedly looking to lower the price of its stock options for employees amid declining growth.
The Chinese technology giant is expected to lower prices to $155 a share from $195, Bloomberg first reported, citing a human resources executive.
ByteDance’s revenue growth slipped to 70 per cent year-on-year last year, down from more than 100 per cent in 2020, when TikTok exploded in popularity.
Beijing’s hawkish approach to local technology companies has also hit the company.
It was reported in July that ByteDance’s valuation had dropped from a peak of $400bn to $300bn.
However, increasing competition from the likes of Instagram parent company Meta may also be weighing on ByteDance’s performance.
After TikTok debuted the short-video social media structure to roaring success, it was not long before Instagram adopted a similar approach.
Paolo Pescatore, technology and media analyst at PP Foresight, told City A.M.: “It is becoming increasingly hard for any provider to benefit from early mover advantage for a long period and differentiate in a crowded market.
“Big tech giants no longer need to move first.”
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