ByteDance, the parent company of TikTok, recently paid approximately 10 billion yuan ($1.5 billion) to acquire a chain of hospitals in China. According to Bloomberg, the business, which is best known for its short video platform, now controls all of Amcare.
So why are they acting in this way? Has a recent trend put so many people on social media in hospitals that eliminating the middleman is now more convenient? Maybe they have some sort of strategy where they advertise fads like the blackout challenge or dry scooping and then clean up when the hospital bills come in? No, the obvious response in this case is probably money.
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The Chinese corporation has recently expanded into other industries through acquisitions, and it may be developing a music streaming service of its own. This is not ByteDance’s first significant venture into China’s very profitable healthcare market, which has a market value of over 6.22 trillion yuan ($1 trillion). Prior to developing an app that links patients to doctors nationally and allows them to share photographs and text information about their symptoms for treatment and diagnosis, they purchased the online medical dictionary Baikemy.com in 2020.
The latest acquisition of Amcare is one of the biggest deals made since China’s ruling party started to target tech titans in 2020 by enacting anti-monopoly rules to target companies they consider to be too big.
ByteDance is by no means the first business to attempt to encroach on the healthcare market after finding success in their primary industry. One Medical, a business involved in both online healthcare and virtual appointments, was acquired by Amazon last month for around $3.9 billion.