TikTok owner ByteDance Ltd. is said to be in partnership talks with India's Reliance Industries Limited - something ByteDance hopes will save its operations in its largest market by users, according to sources familiar with the matter.
Negotiations are in their early stages, the sources said.
The China technology company's popular short-video streaming app TikTok was banned in India on June 29 as a result of a political dispute between China and India following a military border clash that left several dead. India banned 59 China apps alleging national security and privacy concerns.
India is TikTok's largest market outside China with an estimated 200 million users. ByteDance's operations in the country are extensive and it employs more than 2,000 people there. Its business in India is valued at more than $3 billion.
ByteDance has been negotiating with India since the ban but has failed to get off the blacklist. ByteDance assured employees it wouldn't lay workers off while still in talks. However, some top executives have left the company since the ban.
ByteDance and Reliance haven't agreed terms for a deal, sources said. Reliance, through its telecommunications arm Jio Platforms Ltd., is a large presence in India. However, even with its nearly 400 million subscribers, Jio hasn't fully penetrated the country's mobile apps market.
A partnership with Reliance is expected to ease government concerns over TikTok. Reliance owner Mukesh Ambani, India's richest man, is an ally and friend of Prime Minister Narendra Modi. A TikTok partnership could help Reliance gain customers as a result of its access to TikTok's millions of users.
Since April Reliance has raised more than $20 billion from investors such as Google and Facebook. Google's spending in the company includes an agreement to jointly develop a customized version of Android for Reliance's low-cost phones. Meanwhile, Facebook wants to help Reliance digitize small- to medium-sized companies.
