Could the TikTok-GoTo deal signal the end of Shopee’s reign in Indonesia?

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Hello readers,

I’m not much of a dealmaker.

Whether I’m making a trade in my fantasy football league or I’m buying vegetables at a local market in Hanoi, I can’t shake the feeling that the other side is getting the better end of the bargain. But at some point, I suppose you just need to swallow your fears and make a deal, no matter what lingering questions you’re left with.

Short-video platform TikTok and Indonesian super app GoTo (GOTO, IDX) made a blockbuster deal last week, with the former securing a controlling stake in the latter’s ecommerce arm, Tokopedia.

So who won this deal?

Of course, it’s still too early to say for sure, but some of the analysts that my colleagues Miguel and Huong spoke to say TikTok may have edged it. The deal, after all, will bring TikTok Shop back to a lucrative market after a months-long ban and arm it with the infrastructure it previously lacked.

GoTo doesn’t really lose out here as it’s managed to offload a hefty chunk of a loss-making business. It can now focus on its financial services and on-demand segment.

But Sea Group (SE, NYSE), whose ecommerce unit Shopee dominates the Indonesia market, is almost certain to feel some pain as competition is about to heat up. Dramatically.

Opening Bell will take a short break for the Christmas and New Year holidays, so there will be no newsletter on December 25 or January 1. We’ll return to your inbox on January 8. Happy holidays!

— Peter

THE BIG STORY

Image credit: Timmy Loen

TikTok Shop gets winning hand in Indonesia via Tokopedia mega deal
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