Reliance May Buy TikTok India Stake Very Soon, Hints Report

With the prevailing ban on TikTok in India, the short-video platform is reportedly trying to have an Indian investor for its operations in the country.?

Reuters

For the same, TikTok has been reported to have approached Mukesh Ambani-controlled Reliance Industries Limited (RIL).

The anticipated business model is to follow on the lines of TikTok’s US operations, where the Chinese parent firm of TikTok, called ByteDance, had to exit the equation completely following an order by the US President Donald Trump. TikTok is now in talks with Microsoft for controlling its operations in the US.

A similar approach has now been made by the firm to Reliance Industries (RIL). A new report indicates that TikTok chief executive officer (CEO) Kevin Mayer has approached senior RIL executives to analyse if RIL is interested in a stake in the app’s India division.?

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Mukesh Ambani, Chairman and Managing Director of Reliance Industries (Image: Reuters)

RIL and Jio’s corporate development, strategy and M&A teams are now examining whether any investment or acquisition is worthwhile at this stage, a recent report by ET cites people with knowledge of the matter.

Reliance buying TikTok India?

As of now, RIL has declined to comment on the development and has dismissed them as “speculation and rumours”.

“Our company evaluates various opportunities on an ongoing basis. We have made and will continue to make necessary disclosures in compliance with our obligations under Sebi rules and our agreements with the stock exchanges,” the RIL spokesperson told the publication.

As per sources mentioned in the report, the discussions for a US-like acquisition are at an early stage. The report also mentions that the transaction is “unlikely to materialise” because of many obstacles.

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(Representative Image: Reuters)

India banned TikTok and 59 other Chinese apps citing security concerns from the apps amid escalating tensions between the two nations. With India once the biggest market for TikTok, it is likely that the app will push for a re-entry into the country’s market through such a deal.

For now though, RIL is likely to “strategically” decide to go on with the deal based on the valuation of the company in the coming days.