Chinese giant ByteDance is initiating early talks with Reliance Industries Ltd (RIL) for an investment in its popular video creation app TiKTok’s business in the vast Indian market. According to two media reports on today’s morning, these two industrial giants have begun conversation from late last month, but still, no deal has been confirmed.
Before TikTok was banned, in India, it has the largest market outside of China with over 200 million users. The oil-to-retails giant Reliance can make deeper connections with consumers via TikTok. This acquisition could engage more users in TikTok, as speculated by the most valuable firm in India.
Last June, the Indian Government banned 59 Chinese apps, including TikTok due to the heightened border tensions between these two nations, India and China. The US President, Mr. Donald Trump also unveiled bans on US transactions with the China-based video-messaging app WeChat and TikTok. The Indian government may practice the same resolution and return TikTok.
The Economic Times has reported it as “early stage exercise”. The TikTok’s India operation could be valued anywhere between $2.5 billion to $5 billion. In the further report, they mentioned that the CEO of TikTok, Mr. Kevin Mayer had reached out to top officials of Reliance Industries to see if there was any investment interest. As per TechCrunch, TikTok gains more than $3 billion in business from the Indian market.
Till now Reliance, ByteDance, and TikTok have not responded to any comments and queries regarding this acquisition. One official from the Mukesh Ambani owned company Reliance digital said this news is just a speculation. So, we need to wait until any deal is confirmed between these two business giants. But it is sheer hopeful news for the TikTok fans in India.
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