ByteDance is tapping a cash pile of more than $50bn accumulated from its popular short-video apps to buy back up to $5bn worth of shares from investors.The owner of the viral apps TikTok and Chinese version Douyin raked in $29bn in revenues in the three months to June, up about 40 per cent from the previous year, according to four people briefed on the figures. Earnings before interest and tax, ByteDance’s preferred metric of profitability, were $9bn.

By mid-year, the start-up had $51bn worth of cash on its balance sheet, $7bn of which is restricted and not available for immediate business use. Total debt stood at $12bn, according to people briefed on the numbers.

The Chinese social media company, backed by General Atlantic and SoftBank, aims to purchase shares from investors at an approximate $260bn valuation, according to three people familiar with the matter. Last summer, it was valued at about $300bn when it conducted a share buyback from its employees.