- By Aalok Sensharma
- Sun, 16 Aug 2020 08:47 AM (IST)
- Source:JND
New Delhi | Jagran Business Desk: Following the Centre’s decision to ban TikTok after the violent clash with Chinese troops in eastern Ladakh Galwan Valley, Reliance Industries Limited (RIL) is reportedly in talks with ByteDance-owned app to acquire it in India.
According to a report by New Indian Express, ByteDance – the China-based company that owns the short-video making app TikTok – can likely sell its India business to Mukesh Ambani-led Reliance Jio amid uncertainties around its operations in the country.
Meanwhile, a report by news agency IANS suggests that “two companies began conversations late last month and have yet to reach a deal”. The deal is reportedly said to be valued at USD five billion.
However, an official confirmation regarding the deal is yet to be confirmed by the two firms. “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,” Economic Times quoted a Reliance official as saying.
Meanwhile, industry analysts – quoted by the New Indian Express – suggest that “Reliance's acquisition of TikTok is the most likely scenario” and it could be a “viable option to clear the regulatory hurdles in India”.
TikTok has been under huge global pressure over security concerns and data security. Earlier in June, India had banned TikTok and 58 other Chinese apps, citing security concerns and a threat to national security.
Following India, US President Donald Trump also announced a ban on TikTok and set a six-week deadline for the China-based app to sell its US operations to an American company.
“I set a date of around September 15, at which point it's going to be out of business in the United States. It's got to be an American company... it's got to be owned here. We don't want to have any problem with security,” Trump had said.
