TikTok, GoTo Group Partner for USD 840M E-commerce Merger in Indonesia
TikTok and GoTo Group have announced a significant partnership to launch an online shopping service in Indonesia. The deal, expected to close in the first quarter of 2024, involves TikTok acquiring a majority stake in GoTo's Tokopedia business and merging their e-commerce operations in the country.
The transaction, valued at approximately USD 840 million, will see TikTok acquiring 75.01% of Tokopedia. The merged entity will operate under the existing Tokopedia brand, aiming to transform Indonesia's e-commerce sector. TikTok has committed to investing over USD 1.5 billion in the expanded entity over time.
GoTo Group, which has struggled with profitability, reported a 56% increase in its net loss in 2022. The partnership is expected to bring new opportunities, with projections of creating millions of new job openings in the next five years. Patrick Walujo, who replaced Andre Soelistyo as CEO of GoTo Group in March 2023, will lead the company through this transformation. GoTo will benefit from the growth of the expanded entity and remain an ecosystem partner to Tokopedia.
The partnership between TikTok and GoTo Group is set to reshape Indonesia's e-commerce landscape. Despite no information being available about the financial advisor appointed for the transaction, both parties are optimistic about the merger's potential. The deal is expected to close in the first quarter of 2024, bringing together TikTok's global reach and Tokopedia's established local presence.
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