Well, the news is yet unconfirmed but there are chances that Reliance is in talks with ByteDance for an interesting investment in their company to hold stake ownership of Tiktok. If this really happens, it is going to be a great twist for India’s online video market.
As the government has banned 59 Chinese apps due to data theft, privacy issues and many more reasons which includes Tiktok too, if this investment comes true, there are chances that Tiktok will return to Indian online market. As we know that Reliance is the biggest and most powerful industries in India if this investment takes place Tiktok will be able to restore its second-biggest market in the world.
Reports reveal that ByteDance is trying their best to make this deal happen so that Tiktok can give a comeback to India. As the ban of the app in India is really proved out to be a huge loss for the company. Tiktok had more than 20 crores users in India.
Around 2000 people work in Tiktok from India who was not fired even after the ban of the app in a hope that the ban will be revoked and the app will come in the Indian market once again. Reliance has given a hope of a major comeback in the country.
Tiktok’s Indian operations are of around $2 billion, following which Reliance and ByteDance are in talks from the previous month of July. The estimated loss that TikTok will suffer due to the ban in India has valued around 45,000 crore. No final deal has been struck between ByteDance and Reliance which points out that there are possibilities that the ban will not be lifted in India.
In case everything works in favour of ByteDance company, Reliance will happily relaunch Tiktok in India with Indian ownership and a ready-made platform to expand their reach.
Another challenge that TikTok is facing that there are chances that Tiktok will also ban in the US. The President of the US- Donald Trump has issued a deadline for Tiktok till 15 September- To sell Tiktok to the US ownership or to shut down in the US.
This is where Microsoft is coming into the picture. Microsoft is also in talks with ByteDance company for a possible acquisition of Tiktok in the US so that the app could be restrained from the verge of getting ban. The final deal is not confirmed till now.
Both India (Reliance)and the US (Microsoft) are trying their best to convert TikTok into their country’s local acquisition and save the app from getting permanently banned.