Updates in paragraphs 8-11 to include background about the bidding process for TikTok. Paragraph 12 adds TikTok did not respond to a request for comment

By Krystal Hu and Dawn Chmielewski

March 4 (Reuters) - TikTok's parent company ByteDance is offering to buy back shares at a higher valuation than six months ago as it launches a new share repurchase program for U.S. employees this week, two people familiar with the matter told Reuters on Tuesday.

ByteDance told its U.S.-based employees that it is offering $189.90 per share, the people said. The price marks an increase of 11% from the per share price of $171 in their share buyback program from a year ago and $181 from six months ago.

The new share price could value ByteDance at around $315 billion, according to another source, showing the recovery of one of the most valuable private companies from a valuation drop in 2023.

The Chinese owner of the popular short video-sharing app's regular share buyback program underscores its strong balance sheet, bolstered by growing domestic and global businesses—even as its popular app, TikTok, faces the threat of a U.S. ban.

Congress cited national security concerns when it passed a law last year requiring ByteDance to divest TikTok by Jan. 19, or face a ban in the United States.

The app used by 170 million Americans briefly shut down in the U.S. hours before the ban was slated to take effect, then resumed service after President-elect Donald Trump offered a temporary reprieve.

Trump postponed enforcement of the ban for 75 days to give ByteDance the opportunity to explore its options, and directed Vice President JD Vance to oversee the process.

The company has since been in discussions with the administration to develop a plan that would allow it to continue operating in the U.S. The latest share buyback program could help boost morale among U.S.-based employees, some of whom have been concerned about the app’s uncertain future and the lack of a clear contingency plan.

The prospect of gaining ownership over one of the world's most recognized video-sharing platforms, or at least its U.S. audience, has drawn an increasingly long list of people and entities ranging from the world of finance, technology and entertainment.

Reddit co-founder and venture capitalist Alexis Ohanian joined a bid led by former Los Angeles Dodgers owner Frank McCourt to acquire TikTok's U.S. operations.

Other bidders include a group of investors led by tech entrepreneur Jesse Tinsley, which includes the YouTube personality MrBeast, whose real name is Jimmy Donaldson, and Wyoming entrepreneur Reid Rasner.

A TikTok spokesperson did not immediately respond to a request for comment.

(Reporting by Krystal Hu and Dawn Chmielewski in Los Angeles; Editing by Kenneth Li, Chizu Nomiyama and Lisa Shumaker)