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Reliance likely to acquire TikTok in India for $5 billion

India is the largest market for the short video app outside China with more than 611 million downloads generated till date, according to data sourced from market intelligence firm Sensor Tower.

Published: 13th August 2020 06:54 PM  |   Last Updated: 17th August 2020 04:22 PM   |  A+A-

Reliance Industries Chairman and Managing Director Mukesh Ambani

Reliance Industries Chairman and Managing Director Mukesh Ambani (File Photo | PTI)

By Express News Service

BENGALURU: India's most valuable company Reliance Industries Limited (RIL) is reportedly the latest bidder for the Bytedance-owned TikTok in India. 

The Mukesh Ambani-led firm had begun talks last month with the Chinese firm to acquire its operations in India. The deal is said to be valued at $5 billion. 

India is the largest market for the short video app outside China with more than 611 million downloads generated till date, according to data sourced from market intelligence firm Sensor Tower. However, when it comes to monetization, China, US and UK accounted for 90% of the total TikTok revenues.

Although, Reliance and Bytedance both denied any information on the reported deal, industry analysts predict that Reliance's acquisition of TikTok is the most likely scenario especially after the Chinese app was banned by the Indian government in June on the grounds of threats to national security and data privacy. 

Interestingly,  Facebook, which is  the largest minority stakeholder in Reliance's Jio platforms, has also recently launched Instagram Reels in India, where the users can make a short video, embedded in the photo-sharing platform. 

ALSO READ | Mukesh Ambani's Reliance Industries breaks into top 100 global companies

Sanchit Vir Gogia, CEO, Greyhound Research wrote in his note that in the present circumstances, Bytedance's deal with Reliance Jio could be a viable option to clear the regulatory hurdles in India while also helping leverage the nearly 400 million users base of Jio.

ALSO WATCH:

"Although Instagram Reels is being described as a clone of TikTok, the fact is that the similarity of the features may act as an advantage and help the Facebook backed photo-sharing app onboard millions of users in India who were earlier using TikTok. Facebook still has a larger user base than TikTok in India and over the course of time, Instagram Reels can leverage the massive network Facebook has in India. Reels was first smartly tested in low-risk markets and then rolled out in India for scale and mass content - while it may not come across as integrated with other products, it may be too early to judge. Leverage with a broader FB network makes Instagram Reels more compelling than TikTok," Gogia added.

Tech giant Microsoft had earlier said that it is planning to purchase TikTok in the US and other key markets. 

US President Donald Trump's latest executive order last week serving a 45-day deadline for the TikTok sale may likely lead to fastracking the potential sale. Microsoft had confirmed that it is in talks with Bytedance to acquire TikTok and that the discussions will be concluded by September 15.
 


Comments(13)

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  • Narinder

    Being banned means no business in India. That's 0 income. Why give it 5billion? Just let it rot.
    26 days ago reply
  • Parag Sankhe

    I appreciate Mukesh Ambani for his contribution in telecom. But gov focuss on Atmanirbhar bharat boosting people. Ambani interfering everywhere(like on tiktom) may suppress morals of potential business tycoons.
    26 days ago reply
  • Anand Singh

    You have to discover new and better unless TikTok
    1 month ago reply
  • ali

    this is a masterstroke by Indian media.
    1 month ago reply
  • M L NAGESH

    I will change to airtel or Voda if ril buys tik tok
    1 month ago reply
  • Ch Tabrez Alam

    In all worse condition
    1 month ago reply
  • Ramesh

    Boycot reliance for TikTok deal
    1 month ago reply
  • Anand N

    we can live without tiktok. why buying this tiktok for this much huge money.
    1 month ago reply
  • Rishi

    All goes to reliance, which is already a big one but nothin for the start ups, Modi is fuckin up everything
    1 month ago reply
  • satya

    Its a very bad move by reliance
    1 month ago reply
  • A K Gupta

    I do not think it is a very wise decission
    1 month ago reply
  • D sarkar

    Mukesh
    1 month ago reply
  • Syed Amjed Ahmed

    In all crisis situations
    1 month ago reply
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