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Although I still harbor a belief that “real” gaming takes place only on consoles and PCs, I’m not above playing mobile games. In fact, I spend most mornings playing the gacha game Fallout Shelter Online, which is based on the popular Fallout franchise. Not too long ago, it introduced a new player-vs.-player mode where users construct three different teams from the characters they have, and securing victory means winning two battles out of three.
That was all I could think of after reading about how the potential Gojek-Tokopedia merger could put the new entity in direct competition with Sea Group across at least three verticals: ecommerce, digital payments, financial services, and – potentially – food delivery.
What’s more, Sea Group is like a “whale” that pays to win: It has the goldmine that is Garena, its gaming arm (and so we come full circle with this gaming analogy, hey!), to fuel any fights. Whatever happens, if the merger goes ahead, the inevitable face-off is sure to be a spectacle to behold.
Today, we look at:
- How a Gojek-Tokopedia merger could bring them up against a formidable opponent in Sea Group
- Alibaba’s numbers, which are – you guessed it – on the up
- Other newsy highlights such as Bezos’ bye-bye to Amazon CEO role and Google Cloud’s growing pains
PREMIUM SUMMARY
There’s always a bigger fish
What happens when a powerhouse joins forces with another powerhouse, only for them to come up against a mega-powerhouse? This sounds like a standard battle manga plot mechanic, but it’s what a potential Gojek-Tokopedia entity could face in Sea Group.
- Upping the stakes: While fresh capital from a Gojek-Tokopedia IPO would level the playing field, keeping up with Sea’s capacity for burning cash would require the merged entity to deploy that capital more intensely.
- A meaningful story: What the merger can do is build a compelling narrative: the combined Gojek-Tokopedia entity as Indonesia’s first Big Tech company. This would help both firms raise more capital – whether through existing investors topping up or, ultimately, an IPO. Listing on the Indonesia Stock Exchange would also give local retail investors a chance to invest in two household names.
- Uneasy bedfellows: There are other mini-storylines to follow – such as how a consolidation would bring Tokopedia investor Alibaba and Gojek backer Tencent on the same cap table.
Read more: Sea’s shadow looms over a Gojek-Tokopedia merger
STARTUP SPOTLIGHT
The rich get richer
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