New Delhi: China’s ByteDance is in early talks with Reliance Industries Ltd (RIL) for investment in its video-based app TikTok’s business in India, according to two media reports that were published on Thursday morning.
The two companies began conversations late last month and have not reached a deal yet, according to well-known start-up publication TechCrunch, which reported the development citing sources.
The Economic Times also reported the news, calling it an “early stage exercise”, citing six people with knowledge of the matter. The report noted that TikTok CEO Kevin Mayer had reached out to top RIL officials to see if there was any investment interest.
While TechCrunch said that TikTok’s India operations were valued at more than $3 billion, the Economic Times said it could be worth anywhere between $2.5 billion to $5 billion.
Reliance, ByteDance and TikTok did not immediately respond to request for comment. In response to the Economic Times though, the Mukesh Ambani-owned company, said the news was just speculation.
The Narendra Modi government in June banned 59 Chinese apps, including TikTok and WeChat, for threatening its “sovereignty and integrity” after border tensions with China.
Also read: Trump Issues Bans on China’s TikTok, WeChat, Stoking Tension with Beijing
Last week, US President Donald Trump unveiled bans on US transactions with the China-based owners of messaging app WeChat and TikTok, escalating tensions between the two countries.
Microsoft Corp has been in talks to acquire the US operations of the video-sharing app, in an exercise that has been supported by the Trump administration.
Social media platform Twitter Inc has also expressed interest in having a deal with TikTok, sources familiar with the matter told Reuters late last week.
