SoftBank Group Corp. is exploring the possibility of assembling a pool of bidders for TikTok’s assets in India and has been actively seeking local partners, according to people familiar with the matter.
Over the past month, the Japanese conglomerate, which owns a stake in TikTok’s Chinese parent ByteDance Ltd., has held talks with the heads of Reliance Jio Infocomm Ltd. and India’s Bharti Airtel Ltd., the people said, asking not to be identified because the details are private. While discussions have since flopped, SoftBank is still exploring options, according to people.
Representatives for SoftBank, ByteDance, Reliance and Bharti Airtel declined to comment.
TikTok is considering selling its operations in various countries after local governments shut down the app, citing fears that sensitive user data would pass into the hands of the Chinese state. India, a long-time regional rival, has taken a particularly tough stance by banning 59 of China’s largest internet services in July, including TikTok. The move came less than a month after 20 Indian soldiers were killed in border clashes amid growing nationalism stoked by Prime Minister Narendra Modi. India was one of the largest markets for TikTok, with more than 200 million users. In the United States, President Donald Trump threatened to ban TikTok and later ordered ByteDance to sell its assets in the country due to national security concerns.
Despite having only a minor stake in ByteDance, SoftBank has played a particularly active role in the negotiations. In the US, the Japanese company listed Walmart Inc. as the main investor in a group of bidders that also included Google’s parent Alphabet Inc.But the consortium fell apart after the Trump administration insisted that a American technology company will lead investments, one of the most important. people said. Google said it is no longer interested, while Walmart has joined an offering led by Microsoft Corp. It is unclear which group SoftBank is currently working with in the country.
Centricus Asset Management Ltd., which is also a frequent advisor to SoftBank, has partnered with Triller Inc. in an offering for TikTok’s operations in the US and several other countries for $ 20 billion, according to a person familiar with the case.
SoftBank founder Masayoshi Son has a long history of investing in India and an extensive network of local business connections. Local startups supported by Son include e-commerce provider Snapdeal.com, ride-sharing service Ola Cabs, and hotel booking app Oyo Rooms. In December, SoftBank invested $ 275 million in eye care provider Lenskart, minting India’s last unicorn. The company is also part of a solar energy joint venture with Bharti Enterprises Pvt. And Foxconn Technology Co. Son of Taiwan helped pave the way for Walmart’s entry into the country by selling its stake in Flipkart Online Services Pvt Ltd. in 2018.
Son has been on a $ 42 billion asset selling spree, unloading stakes in Alibaba Group Holding Ltd., T-Mobile US Inc. and SoftBank’s national telecommunications unit, SoftBank Corp. Son is also looking to sell or list Arm Ltd., the chip design. firm he bought four years ago for $ 32 billion.
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