Tokopedia and TikTok complete mega merger as GoTo closes profitable Q4

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Indonesia’s mega TikTok–Tokopedia merger deal has officially closed, thus marking TikTok Shop‘s return to Indonesia.

The transaction, which was first announced in November 2023, combines Tokopedia and TikTok Shop Indonesia’s businesses under the Tokopedia entity. The latter is now co-owned by TikTok and GoTo Group.

TikTok has a controlling stake in the merged entity. However, GoTo will earn revenue from an “ecommerce service fee” from Tokopedia in line with the ecommerce platform’s scale and growth.

The deal closing comes as GoTo Group, which houses Tokopedia, hit positive adjusted EBITDA for the whole of Q4 2023, it said in the statement.

“As our profitability and cash flow continue to improve, we will optimize our capital usage in line with a newly developed capital allocation plan, which may include a share buyback initiative, subject to regulatory and shareholder approval,” said GoTo Group CEO Patrick Walujo.

In the joint statement, GoTo and TikTok also said that they expect the Tokopedia-TikTok integration and migration process to be completed soon, in line with prevailing regulations.

Furthermore, TikTok and Tokopedia have partnered with Indonesia’s Gadjah Mada University (UGM) to establish the GoTo x TikTok x UGM Technology Center, a digital talent development center that will facilitate an internship and employee exchange program.

The two giants also reiterated TikTok’s US$1.5 billion commitment to the enlarged company over time, which was part of the announcement last year.

See also: Lomotif, also-ran to TikTok, undergoes liquidation amid disarray at parent firm