ByteDance could sell TikTok's Indian assets to rival firm Glance
What's the story
Short-video app TikTok's parent company ByteDance is reportedly exploring the possibility of selling its Indian assets to rival unicorn firm Glance. The Indian government had banned many Chinese apps including TikTok following border tensions, last year. The government could relax the app's ban if ownership is transferred to Indian entities and all user data is held on servers physically located within the country.
Four parties involved
SoftBank Group initiated talks; Deal will require government approval
The discussions have reportedly been initiated by Japan's SoftBank Group, which is a backer of ByteDance as well as InMobi Pte that owns Glance. Bloomberg reports unsubstantiated sources familiar with the talks saying the discussions involve four sides. The talks are between SoftBank, ByteDance, and Glance. Any deal that materializes will require approval of the Indian authorities.
No comment
ByteDance downsized local operations due to uncertain future in India
Last month, ByteDance made cuts to its 2,000 member team in India. According to a company memo seen by Reuters, it was uncertain about resuming operations in India. The move followed Indian government's stay on the ban of 59 Chinese apps. SoftBank and ByteDance did not respond to Bloomberg's request for a comment.
Asserting control
Indian government could insist servers and technology be maintained locally
In fact, following TikTok's ban in July last year over compliance and privacy issues, Glance-owned short-video app Roposo had gained popularity. While the report suggests the talks are private, early, and complex, it also says that the Indian government will insist that user data and technology used by TikTok stays within Indian borders if the talks are to continue further.
Big-leagues
Deal could make Glance formidable player in short-video app space
If the deal goes through, we believe Glance could become a formidable player in the short-video app space, as TikTok enjoyed 200+ million users in its heyday. Under the Donald Trump administration, the US followed in India's footsteps and banned numerous Chinese apps including TikTok. However, current US President Joe Biden is expected to suspend the ban imposed on TikTok and messaging service WeChat.