TikTok and GoTo, prominent technology companies in Indonesia, have announced a new joint venture. TikTok will be investing approximately $1.5 billion to become the majority shareholder of the e-commerce platform Tokopedia, which is owned by GoTo. As a result of this deal, TikTok now holds 75.01% of Tokopedia shares and will integrate TikTok Shop into Tokopedia’s services, as previously reported.
TikTok Shop ceased its operations in Indonesia two months ago, following a ban imposed by the Indonesian government, which prohibited social media platforms from facilitating commercial transactions. This ban has had the most significant impact on TikTok.
GoTo, the parent company of Tokopedia, will still hold the remaining shares and continue to be a business partner. In addition to Tokopedia, GoTo also offers two other core services: GoTo Financial, a financial services platform, and Gojek, a transportation and food delivery service.
TLDR: TikTok and GoTo have formed a new joint venture, with TikTok investing $1.5 billion to become the majority shareholder of Tokopedia. TikTok Shop has stopped operating in Indonesia due to a government ban on social media e-commerce. GoTo will retain its remaining shares and continue its business partnership, offering GoTo Financial and Gojek services.
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