Stock Groups

India’s ShareChat to acquire local rival MX’s short-video app -sources -Breaking

by Mike Robinson

[ad_1]

2/2
© Reuters. FILEPHOTO: This illustration was taken July 26, 2021. It shows ShareChat as well as a stock graph. REUTERS/Dado Ruvic

2/2

Aditya Kakra and Aditi Shaikh

NEW DELHI, (Reuters) – ShareChat, the parent company in India, will buy MX, a local competitor, in a deal worth around $700million, according to two sources. This is a sign of fierce competition in the industry where major foreign investors are making big bets.

Indian short-video apps are now very popular after New Delhi banned TikTok from ByteDance in India and several other Chinese apps during a border dispute between India and China. Mohalla Tech (ShareChat’s parent company) launched Moj, a short-video sharing platform that has 160 million users. It is a key competitor to TikTok and includes Meta Platforms Inc’s Instagram Reels.

ShareChat’s parent company will purchase MX’s short video platform TakaTak in a cash-and stock deal, sources close to the matter said.

One source said that the deal valued at $700 million could be made public within days. Reuters first announces that the deal has been reached.

ShareChat has a market value of approximately $4 billion. Temasek Holdings Singapore and Twitter (NYSE:), are among its shareholders. ShareChat declined to comment. MX spokesperson said that she had no immediate comments.

ShareChat’s parent company MX TakaTak will have now two short-video apps within its portfolio.

According to one source, the company intends to increase its use artificial intelligence tools, and reach a wider audience. Moj, which has about 160 million Indian users, has MX around 100 million.

Disclaimer: Fusion MediaThis website does not provide accurate and current data. CFDs include stocks, futures, indexes and Forex. Prices are provided not by the exchanges. Market makers provide them. Therefore, prices can be inaccurate and differ from actual market prices. These prices should not be used for trading. Fusion Media is not responsible for trading losses that may be incurred as a consequence of the use of this data.

Fusion MediaFusion Media and anyone associated with it will not assume any responsibility for losses or damage arising from the use of this information, including chart data and signals to buy/sell, contained on this site. Trading the financial markets is one of most risky investment options. Please make sure you are fully aware about the costs and risks involved.

[ad_2]