Tiktok ByteDance Building Hospital in China!
Tiktok ByteDance Hospital – Overview
With the acquisition of Amcare, a company that manages upscale children’s and women’s hospitals around China, TikTok‘s parent company ByteDance is placing some rather significant bets in the healthcare sector.
According to Bloomberg, ByteDance spent $1.5 billion on the buyout.
ByteDance’s healthcare division, Xiaohe Health, confirmed the acquisition but would not disclose the transaction amount.
The deal is making waves in the IT sector.
One example is that China has increased its anti-competition restrictions for tech companies over the past several years and prevented significant mergers, such as Tencent’s plan to combine the nation’s top two live-streaming gaming platforms.
Amcare’s expertise also seems unrelated to ByteDance’s core activity of producing short, addictive films.
However, it’s not unusual to see internet juggernauts from China and the United States making forays into the healthcare industry as part of their diversification plans when they have the resources and user base to do so.
The corporation that runs private maternity wards that are well-liked by China’s elites and well-to-do won’t likely take over Amcare’s management; instead, it will at best integrate Amcare into its healthcare portfolio.
ByteDance’s entry into the healthcare industry, at least as far as is known, began in 2020 when it acquired a business that disseminated health information to the general public.
ByteDance’s health business eventually changed its name to Xiaohe Health, and the company has a broad range of interests in the industry.
Its expanding investment portfolio includes businesses that do DNA synthesis and drug discovery.
It will be interesting how ByteDance integrates its entertainment business with its nascent biotech and healthcare division.
The powerful search engine Baidu demonstrated the dangers of combining the selfish ad industry with the healthcare industry, which should, in theory, put people’s lives before profit.
When it was discovered that a student who passed away from cancer had taken out a loan to pay for an ineffective therapy that he discovered promoted on Baidu’s search engine, the company caused a nationwide uproar in 2016.
ByteDance is skilled in directing users from one well-established platform to a new one to aid in the latter’s growth.
It could easily add a few promotional pieces for its healthcare services to its Chinese short video app Douyin, which had 600 million daily active users in 2020.
It’s a degree of power that must be used responsibly and prudence.