Months after the government banned popular short video sharing app TikTok, parent ByteDance is planning to sale its India operations to rival unicorn Glance.
More than six months of being non-operational in the country a report from Bloomberg now hints that the ban on the short video platform could be lifted soon. The report noted, “ByteDance Ltd. is said to be exploring a sale of the India operations of TikTok to rival unicorn Glance, in an attempt to resuscitate the once-thriving short video sharing app that’s been banned indefinitely in the South Asian nation.”
It further highlights that “the discussions have been initiated by Japan’s SoftBank Group Corp. conglomerate, according to people familiar with the talks, who declined to be identified because the talks are private as well as early and complex.” Notably, SoftBank backs both Glance’s parent company InMobi Pte and also TikTok’s parent ByteDance.
The talks are between SoftBank, ByteDance and Glance and any deal will need a final seal of approval from Indian authorities. India banned thousands of Chinese apps including TikTok last year following intense hostility on the India-China border. Japan’s SoftBank Group Corp has initiated the discussions between the two firms. However, the talks are private.
Last month, ByteDance reduced its 2,000-plus India team and said in a company memo that it’s unsure of resuming operations in India. The move came after India decided to retain its ban on TikTok and 58 other Chinese apps following responses from the companies on issues such as compliance and privacy. However, the Indian government will insist that user data and technology of TikTok stay within its borders if the talks progress.
SoftBank has been attempting to salvage TikTok’s India assets and had been hunting for local partners even as the new U.S. administration put on hold the unwinding of the American operations of the popular short video platform, asking a federal judge to pause a lawsuit after former President Donald Trump banned it. If the talks’ progress, the Indian government will insist that user data and technology of TikTok stay within its borders. China’s new rules around the export of technology make the negotiations even more intricate, and any sale of TikTok could need approval from Chinese authorities.
