NAME: TikTok’s $1.5 billion investment in GoTo
LAW FIRM: Skadden, Arps, Slate, Meagher & Flom, Davis Polk & Wardwell, Widyawan & Partners
PRACTICE AREAS: Corporate and M&A
INDUSTRY SECTORS: Technology and telecommunications
TikTok’s $1.5 billion investment in GoTo is our deal of the month for December.
China’s biggest short-form video hosting service TikTok has planned to invest $1.5 billion in GoTo’s e-commerce unit Tokopedia, in which TikTok will become a controlling shareholder with a stake of over 75%. Tokopedia and TikTok Shop Indonesia's businesses will be combined under the new existing Tokopedia entity. The deal, expected to conclude in the first quarter of 2024, will strengthen GoTo’s financial and strategic position in the Indonesian market.
The deal comes after Indonesia’s recent decision to ban e-commerce on social media to protect its local merchants, as TikTok was forced to discontinue services of its own e-commerce platform TikTok Shop in October.
GoTo is the largest digital ecosystem in Indonesia, offering services such as ride-hailing, delivery and financial services. With its new partnership with TikTok, the entity will improve its service for micro, small and medium sized companies in Indonesia, which make up more than 90% of business merchants in the country. GoTo CEO Patrick Walujo said in a statement, “We are creating an Indonesian e-commerce champion, combining Tokopedia's strong local presence with TikTok's mass market reach and technological prowess.”
Skadden advised TikTok with Hong Kong corporate partners Haiping Li and Jonathan Stone leading the team.
Widyawan & Partners also advised TikTok on the deal, with corporate partner Teguh Arwiko leading the team.
Davis Polk & Wardwell advised GoTo with corporate partner Miranda So leading the team.