Even as the Tik Tok ban in India continues to stay in place, there are reports that an Indian investor is likely to come on board with the company.
If reports are to be believed, TikTok has been approached by the Indian business tycoon Mukesh Ambani owned Reliance Industries Limited. If everything goes well in the deal, the business model might be a replica of the TikTok’s United States operations. However, the China-based ByteDane which owns TikTok might have to exit the company. This comes after the United States President Donald Trump’s order. Now, the platform is in talks with Microsoft to look after the operations in the United States.
Reliance Industries Limited has also taken a similar approach. As per a report, the chief of TikTok, Kevin Mayer has approached senior executives of Reliance industries to check if the company is interested to take a stake in the India division of the application.
The US-Based Approach
After this, Reliance Industries Limited and Jio’s teams of corporate development and strategy have now coordinating whether there is a possibility of any investment or an acquisition. When contacted about the development, the Reliance Industries refused to comment but the spokesperson said,
“Our company evaluated 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.”
However, there seem to be many obstacles for Reliance industries if they follow the United States like the acquisition model. The United States acquisition itself is at a very early stage. The report says that it is highly unlikely to materialize.
Last month, India banned TikTok and 59 other Chinese apps after the violent clash between the Indian Armed Forces and China’s People’s Liberation Army in the eastern region of Ladakh. The ban was imposed citing security concerns.
Source: India Times